Category: Money tips Release Date: 2006-07-19
Price trends on the stock market saw a comment on the most common language is a rational and non-rational, the market if there is abnormal twists and turns, get the evaluation is often irrational. Regrettably, however, in such a non-rational, the stock price tends to behave more irrationally. Such as Baoshan Iron and Steel warrants through Monday, Tuesday frenzied speculation, in the eyes of many people should be said to have non-rational to the extreme, but Wednesday it rose by 14%; with tire rubber as a representative of a group of Shanghai local small-cap stocks, up nearly 200% within a short time, the Government can be very irrational, but many of these stocks once again daily limit Wednesday, a record high has become an inevitable trend. ST Fenghua of which is even more out of a record 22 consecutive daily limit.
In fact, the evaluation of rational and irrational is to address the purposes of the intrinsic value of the stock on the stock prices do not apply, because stock prices followed the trend, while the trend is difficult to change once formed, and this trend appears very vulnerable to After the more irrational irrational. It is true that, according to price and value theory, the price and value can not be a huge departure from a long time there, so the price will eventually return to the value of rationality. The trend is only under the action of such a return is not necessarily appeared in a short time. With "there is reasonable" famous words to evaluate the stock price movements may be more appropriate. Hegel's famous thesis that the saying is that any existing things there must be reasons behind it and under. Specifically mentioned above, several varieties of view, the tire rubber boom should be considered a subject hype, big money borrowed by Liu Tongpan lower proportion of such companies is expected to change in the stock on the context of higher prices expected; while ST Fenghua there are semi-annual gross per share, more than four and three-quarter will continue to support a substantial increase in performance compared with its current price, the 22 daily limit seem to be only part of the return of prices to value. Baosteel Warrants crazy speculation, in addition to part of the funds have not be ruled out by controlling the movement of the warrants in order to control the intention of Baosteel, the small number of warrants, for far less than is the main reason for recruiters.
Regardless of subject matter Yehao fried, fried performance matter whether, in the broader market warmed up the process of making money is the last word. However, we must understand the intrinsic value of chips in their hands, opponents hold speculative variety, once the trend is turning decisively should be thrown, should not be forced to become a long-term short-term speculative "investment."
