Category: Money tips Release Date: 2006-02-04
This is a two-week stock market soared, but the pre-fund largest holding defensive stocks are underperforming the other hand, according to semi-annual report last month, the disclosure of the Fund, the Fund has the phenomenon of cross-shareholding has reached an unprecedented level. This is really a testament to a well-known metaphor on investment: Investment is like a group of deer grazing, the risk is a lion. Most deer will stand outside the relatively lush grass to eat, but the risk of facing a lion eat; if hiding in the deer, the lions were relatively small risk of eating, but because of too many deer grazing Therefore, eating the grass may be relatively poor. Look at this month's stock market, stock change due to fears caused by expansion, fearing the economic slowdown, some stocks, such as SureFire, consider the words of a minimum price of only four to five times the value of PE, so now these stocks are also higher return of value .
Reportedly, the U.S. stock market is intended to attract early stage investment in the United Kingdom rich, when the United States railroad company's stock is also mainly held by the British. But when the stock market downturn, but the British have sold these shares, the result is the Americans to use British money to build the railway, but also cheap to buy ownership. This story illustrates the rationality of human emotional impact is unavoidable, and this led to two results: First, the stock market intervention is necessary, just a formality to choose good; Second, the volatility of the stock market very often only because the mental itself, have little to do with the fundamentals, because different people will look at the psychological same thing would have different conclusions. Such fluctuations also caused psychological growth stocks and value stocks alternating Change.
The international community generally based on the price level of stocks into growth stocks and value stocks. The so-called value stocks, those prices are often higher than the prices of similar businesses is much lower share of stocks, this low price may reflect investors of the recent problems with the company's concerns, such as poor earnings, sudden crises and opaque and so on. Value stocks also includes some has not been recognized by investors in the new company's stock. Growth stocks is the annual income within the next few years could be higher than the market average of the company's stock, such as is currently the fund's largest holding of non-cycle stocks, such as airports, wine classes and so on, because of its performance continued to grow, growth Stock prices are also more expensive.
The risk of growth stocks is that higher prices, enterprises may be lower than expected growth, such as the poor performance this year, the East A donkey-hide gelatin, in the second quarter sales data is not satisfactory knowledge of the news for the market, its stock price way down. The risk of value stocks is that, although the price has been low, but still may not rise or even decline, such as banking stocks, due to economic decline is expected to increase in bad debts, its shares have fallen to consider the price factor, the lowest PE Shanghai Pudong Development Bank only 8 times. If investors will be stuck with intervening time earlier. As Graham put it, just because an investment in the stock go lower, this stock when the broader market was up or not, but the broader market fell Shique down very quickly. Observed in this year's A-share market, most of the time in line with this judge. However, statistics show that the historical value of the performance of stocks and growth stocks is almost evenly divided, but a good different times, under normal circumstances, the value of shares during the performance of the economic recovery is usually better than growth stocks, but in the later stage of economic expansion, growth performance of stocks is very good, which from 2003 to the current A-share market is also in good agreement.
