Category: Money Tips Date: 2006-09-19
With the A-share market steadily climbed, the Shanghai Composite is also become increasingly closer to 1757 points before the high point, high pressure has also been seen in yesterday's disk, the Shanghai Composite closed out the meaningful Yin Cross star, Affected operating funds separate ways there is disagreement between the way of thinking, the more gradual rise more selling point of view prevail.
Index rose space are limited to
K line of the present day increase in channel point of view, the Shanghai Composite in the recent breakthrough in the early 1757 high point of the market, and there is not much differences. On the one hand because of the strength of the trend. The other hand, there continue to do more than power, real estate stocks, financial stocks, heavyweight Dengjun subjects with active again or market expectations based on these plates as long as there is one member stood up shouted, 1757 points top could have been long, "gently" tear up.
But flip the top after the Shanghai Composite Index, as well as how much to expand space capabilities, the market is actually clear. This is mainly based on two factors:
First, the current valuation of the pressure starting to show. A stock market is dynamic price-earnings ratio has reached 26.34 times the current valuation levels, although can not say there's a bubble, but at least are not so attractive, so, after breaking through the previous high, it may not be able to appear rushed and off-site resources into the situation.
Second, the game changed the pattern of forced to wait for additional funding to wait and see. Because the original securities market, is the institutions and agencies or institutions and small money game, but as the share reform process will be drawing to an end, more and more "small non-", "cardinal" who sell the chips to obtain an unlimited flow of the right to Well, the game pattern will become a "cardinal" and "small non-" the secondary market industries such as capital and financial capital of the game, the game in the new pattern, what the market produces what kind of impact, the new funds do have a wait and see necessary. Therefore, in the near future, expect a substantial new funding approach is clearly unrealistic.
Because of this, the Shanghai Composite in the near future may indeed be a breakthrough early high point, but does not break out the high point of a sharp surge in the pattern, because of the lack of funds outside the possibility of large-scale approach, therefore, the industry raised The more ideas up operations to sell more there is a certain rationality, but also has a certain amount of market-based.
Not because of the level of buying and selling of stock index But the problem is that, after recent changes in investment philosophy, as market participants increasingly feel that the author, if judged purely from an index based on the level or trend of the index as the criteria for buying and selling stocks, it seems difficult to obtain a larger return on investment.
Because the composite index is a secondary market price of all listed companies, a comprehensive reflection of the trend, however, the internal operations of listed companies is not a synchronous structural changes. In other words, some listed companies may be just the state peaked in the broader market, the emergence of positive change, then the broader market peaked, of course, in the short term may be the listed companies put pressure on the secondary market price movements, but the listed company formed by the improvement of the state to do more power, will eventually resolve the A-share market index to adjust the pressure brought to its stock price.
In other words, the index is high or from high adjustment trend for the background, without any analysis, if all of the shares are sold, just like pouring dirty water will splash out with the kids, like most likely and even throw away the good stocks . Even in the 2001-2005 bear market cycle, the index again falling, but there have been G Maotai, G potassium, G Yun Bai Yao Niugu such a large high repeatedly. Similarly, in the year of the stock market, also repeatedly appeared pullback, many stocks are volatile, the trend of a new high.
Because of this, I believe that, in the current index is at the stage where a choice of directions, of course, pay attention to fall on the individual stock price index, once the pressure, but more importantly, stock investors on their holdings back to the operating level, very clear understanding of the underlying business status of these stocks is also at the peak of the relative prosperity, or whether at the peak of profitability, or whether the overestimation of its valuation. If the economy is in a slump and facing upward inflection point, then, that such stocks may continue to hold, the market rose, after all, no one knows at what point and will go up again, but as long as able to grasp the fundamentals of the company's future is better than current and the relatively low valuation level, then you can continue to hold without the need for adjustments due to the index blindly sell.
