Category: Money tips Release Date: 2006-09-15
Value and growth capital market is co-sanctioned two basic styles. Overseas capital markets research shows that in the long run, value stocks are in general better than growth stocks, then the value and growth stocks in the A-share market's actual performance is what happened?
Recalling the A-share market value and the relative growth performance, if we will be A-share market in 1998 as the beginning of a bit of size, basically the market is divided into two phases of history, from 1998 to early 2003, the value and growth strengths and weaknesses, competing high, more time is growth stocks outperformed value stocks. Reason to believe that prevailing in the non-rational behavior of market speculation generally biased in favor of high price-earnings ratio of stocks, rather than the deliberate pursuit of growth.
However, since 2003, value-based performance relative to the growth began to reverse, and take the win growth, until July 2005. Explore the reasons for this, a kind of explanation would be attributed the value of a bear market return and then the rise of the concept of value investing. However, if you look closely analysis, we found that in 2003 a time when the industry cycle in the economy class up stage, the cycle of stocks in the strong fundamentals, supported by good market performance. As the cycle stocks are usually relatively low valuations, the general attribution of value stocks, so the value of stocks outstanding performance in the time period.
However, starting from July 2005, at the right value and growth options, we seem to be at a turning point. The future market, value and growth-type who will dominate? We are looking forward to see around the interesting style of the third stage of Romance.
In the past year was about, we have implemented the "top-down risk-averse" and "bottom-up mining opportunities" defensive overall investment strategy. In this strategy under the guidance of the investment performance achieved expected results.
However, the market within a year, ever-changing. Part of the defensive advantages of the valuation of assets is gradually lost; economic policy and the economic environment changes have also spawned a new investment opportunities; market confusion in the show; investment concept in the broad participation of various types of investors quietly changing. To this end, we consider it necessary to find new ideas. Through the macroeconomic and market research, we developed the following in the coming year the main investment strategy.
The value and growth style of investment choices, we will take "take two poles" strategy: on the one hand to hold the investment cycle from the impact of the economic downturn remains in a stable and predictable growth of the company, on the other hand choose the right buy ultra-low valuation of the stock, generally focus on the former.
This investment strategy argument similar to bond portfolio in the "dumbbell" strategy (ie a partial short duration and the duration of long bonds, so that combined to circumvent interest-rate risk, interest rates may increase or decrease in the can benefit from), so we have this equity investment strategy known as the "dumbbell" strategy. The difference is that stocks in this strategy, we have to "neutral" is not the impact of interest rate volatility, but rather unpredictable market changes and roaming investor sentiment. (The author is fund companies to invest in ABN AMRO Xiangcai Director)
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