Eight new understanding of the stock market Money Tips

Category: Money Tips Date: 2007-06-25

â–?ZHANG Shu-huai since last year, combined with the broader market trends and the performance of individual stocks, combined with their own last year's investment experience and new experience, I know there are eight, it can be said to 8:00 experience, say so, and we share.

Understanding of one, how to look at blue chips. The past, there is the fear of love small. Speculate that the large-cap stocks do not move, the small rate of increase. However, in 2006 of the stock market has given us an understanding of the opposite, the biggest blue chip companies are rising. Blue-chips on behalf of the country's economic strength and development level, with the country's most high-quality resources, with the country's most outstanding management talent, inevitably leading blue chip companies can best embody our country's economic growth rate of 10% annually. Blue-chips, although there will be up and down, but long-term investment in blue chip companies will be able to secure a stable income, will certainly be able to share the results of the national economy brought about rapid growth.

Understanding of two, how to look at institutional investors. Institutional investors has become a leading force in the market, small and medium retail-dominated era has ended. Therefore, institutional investors, the stock market hot spots for future excavations and the lead, we must keep up with the pace of institutional investors, and they are a move forward.

Understanding of three, what the profit model. Profit-band model is speculation in the past, to become shareholders of stocks ashamed of speculation. But the broader market has now entered the era of blue-chip institutional investors profit model is the gradual transition to the dividend and growth, be careful to do band has become a new voice on the market. We must also come up with a long-term shareholders of the Company to do the courage to select high-quality high-growth companies, to the company to profitability.

Recognizing Fourth, the bull market to be shareholding stake again. Bull market who can have a larger stake of the profits, but continually popped up often is rounded out to broker working. Individual investors to have a fatal weakness in the end the bull market bear market can not be held holding the ceiling, Nabu Zhu bull market has given us too many lessons.

Understanding of five do not touch the underperformance shares, a loss of shares and the verge of delisting stocks. In the past there was an argument underperformance shares once the reorganization, it will become the Phoenix black-bone chicken. This situation, but not where the underperformance can be re-stock, small and medium retail real to the enemy on the reorganization of the information, nor can an insider insight into the reorganization, or underperformance Unit for good homes. Riding a dark horse than on a white horse.

Knowledge 6, the stock will be seriously divided. Into the blue-chip stocks since the era, it would be a good performance, high-growth, in line with mainstream international hot spots rose faster, up more. The future, tens of dollars on the hundred dollars in the stock is bound to one group, while one or two dollars there are a number of penny stocks, stock prices will show a strong differentiation trend. We have to select individual stocks to keep up with the mainstream and hot spots.

Understanding of seven, no longer dependent on winter planting. The past, China's stock market is generally depressed in winter, spring up. Explanation is that by the end of the institutional closing period, repay the loan period, the Fund dividends, so they will throw the stock, so that the stock market downturn. But now the fund dividend has been incomplete at the end of the social security fund, QFII and so on are all long-term investors, they do not necessarily want to cash at the end. It is the winter of 2006 rose.

Understanding of eight, to have an international perspective. China's stock market and the linkage effects of international stock markets will keep rising. Although the "2.27" China's stock market crash, followed by a global stock market crash, there are some people do not think the impact of China's stock market world stock markets, but the linkage between them will become stronger. Our vision should be liberalized gradually formed a global perspective, can no longer isolated, closed look at A share market.