Investment Strategy 28 rule and the stock-picking strategy Money Tips

Category: Money tips Release Date: 2006-11-19

In the real world, usually 20% of products, covering 80% of the turnover; 20% hold 80% of the wealth; 20% concentration of 80% of people's wisdom ... ... This is the famous "28 Rule" . In fact, the stock market then why is not the case! 20% rise in the stock fell 80% to cover up the fact that 20% of the investors in the stock market to go earn 80% of the profits, 20% of the companies accounted for a total loss of 80% of the company's losses and so on.

Recent market, "28", "19" phenomenon obviously, this will be a leading future development of the main keynote Quotes. That being the case, we select individual stocks, the strategy may wish to take 20%.

At present, in order to Suning Appliance, Guizhou Maotai as the representatives of the consumer stocks, with China Merchants Bank, Shanghai Pudong Development Bank, Bank of China, Industrial and Commercial Bank of China as the representatives of the financial stocks, with China Sinopec, Baosteel, China's Air China, China Vanke etc. on behalf of large blue-chip and so on, constitute the outstanding performance of 20%. However, such a fund, QFII market, as represented by the main excavated 20% of the gains have been large, now to become a winner, then the ideas take the lead in the market.

In my opinion, can become a multi-year Quotes in the market-leading 20% of the stocks may be generated from the following four major areas:

First, appreciation of the RMB against the background of the financial, real estate, aviation and other industries for investment opportunities. China Merchants Bank, Bank of China, Poly Real Estate, COFCO Property, Air China and other firms, will continue to be full of opportunities.

Second, the Olympic Games in the context of tourism, commerce, urban development, sports, media and other industry opportunities. One Beijing tourism, Wangfujing, Beijing urban and rural, North Star, China Sports Industry, China, as the media, Gehua and other firms have the opportunity.

Third is the "medical reform" in the context of opportunities for pharmaceutical plate. Including large pharmaceutical distribution companies, the designated drug manufacturers, medical equipment manufacturing enterprises, and innovative pharmaceutical companies Dengjun a very good development opportunities related to listed shares of companies such as Sinopharm, Shanghai Pharmaceutical, East China Pharmaceutical, Guangzhou Pharmaceutical, Yunnan Baiyao, on-chip Tsai Huang, Tong Ren Tang, Jiang Chinese medicine, Ma Ying-lung, North China Pharmaceutical, Double-Crane Pharmaceutical, Tasly, Shandong Pharmaceutical Glass, Xinhua medical, medicine, Wandong Medical and Hengrui have a better chance.

Fourth, in the context of the WTO, opening up opportunities for mergers and acquisitions of listed companies. Iron and steel, finance and other industries are more likely to be mergers and acquisitions and anti-foreign mergers and acquisitions within the high-fat, the Baoshan Iron and Steel shares, Maanshan Iron and Steel shares, Angang Steel Company Limited, CITIC Securities and other firms are given the opportunity.

Choice in the individual stocks, there is a 20% strategy is equally important. In fact, there are always 20% of the stocks, in the period of time regardless of broader market up and down, and regardless of the "28" or "82" market, they always fall.

At present, the need to avoid the probability of a larger decline of 20% stocks include:

1, stock speculation serious overdraft results support the "subject shares." Near the end of the year, annual performance factors will show that those who alone "story" speculation of a listed company, there must be a value return process.

2 to the ST shares represented by stock underperformance. While these stocks may still have a significant realignment of a miracle, but they are not too many uncertainties, the overall risk.

3, some have not yet stock reform "S" Unit. Some obstacles exist a wide variety of outstanding shares of stock reform reform companies such as stocks are still not change before the end of the year, they will be financing next year's policies and even restrictions on trading systems, etc., and is the market marginalization.