Category: Money Tips Date: 2006-02-16
Shanghai and Shenzhen stock markets, such as Kuanglong soar, almost swept all the individual stocks, look at this momentum rising for five days this week, is also commonplace. Wednesday's close, the benchmark Shanghai Composite Index rose 73 points at 2905 points, 16 points Shenzhen Composite Index rose 726.9 points, reportedly, the two cities into a turnover of about 2 to enlarge, reaching 114.8 billion yuan. I was also the last two pre-holiday trading days, stock index rose should be no suspense, but may also Tiaokonggaokai today because of Ping An Insurance purchase large amount of money unfrozen. The stock market has already experienced the "pumping," quite adequate profit chip washing, it is highly conducive to afternoon endless rise, it is proposed that investors "Hugging a" bargaining chip.
Investment Philosophy chaos
Broader market strong, but there is also the phenomenon of junk stocks soared as investors paranoia on past experience, it is possible that the stock peaked, but the reality is not so.
Hudong Heavy, urban stock and some stock restructuring resumption of the ST shares a very fierce speculation, the market is full of the overall market and injecting rumors or rumors. The fundamentals of China's A shares will be drastic changes at any time, so it created the theory of classical valuations stupid.
There were a lot of people say, A shares will appear a few cents and a few cents of the stock, saying that, and Hong Kong "penny stocks" into line, but if there is a large number of such shares the story of the city, then the integration will be greatly delayed.
Warrants have an "Implied Volatility" concept, it warrants even in the "out of the money", but also can justly claim the value of some money. Mainland China A share of the main direction and performance of the "extended volatility," the world is unparalleled, if a bit of money thrown Yi Gu, who can guarantee that will not become the next City shares?
Such fundamentals suddenly become "small probability" multiplied by the case of a good thing into a really "big" theory or is the stock price theory, mathematics, is called "expectations" and the price of this theory may be a few dollars.
Therefore, the current system, under the premise of the actual garbage shares were worth at least three or four dollars, there may be "valid", so not to arbitrarily attack or by virtue of the will of the random commentaries, but not the circumstances and do not understand the special unit of the Economist They must not make irresponsible remarks.
Temporary diversification
Ji-Ping shares this week, are due to the performance of a fierce, and the Fund Awkwardness dejected and fans, so the operation and there were a dilemma. If the speculation of course, annual risk of junk stocks, but if not dismiss, refuse stocks are also up was very fierce indeed.
Counter-measures, I think that for the time being not Shigekura one or two stocks, just in case do not rise will affect the state of mind, so good period under review the appropriate diversification of investments, such as the white horse to take some shares, but also get some cheap stocks to save Ji-ping.
Fund seems to temporarily fade out some hot money has become more frantic, yesterday's standings is trash stocks rise into pieces, of course, and the aforementioned "valuation of chaos" are not unrelated.
Through the fall and redemption, the fund growth rate will be affected by restrictions on personal danger because people no longer buy the fund, and many stocks are not blind and then as a bond investment fund, which is the recent trend of weak Awkwardness of Fund another reason.
The last reason is that after the holiday may not be a major positive, because if any, that with these large capital "R & D capabilities", the general also can know the future.
The general trend, the current decline can not find the reason for suspense, although no major positive or Festival. Overall, the stock market there is a policy and financial support, so who dare not hold cash, reasonable to say that this market is terrible, but think carefully about the real risk is actually like barbarians.
