Category: Money Tips Date: 2006-11-24
Source: Securities Times
Now this time, I am afraid no one would think that the market is not in a bull market; however, reflected from the disk market psychology point of view, they do have a lot of investors are still being affected by the bear market.
Since entering since 2007, the stock market has been about two weeks there have been too high shock, when there are a number of stock investors, bear the ups and downs and leave the market; stock index shot up after the once occurred in a relatively large decline, even more people exclaimed, "crash began." Clearly, although many investors have a strong bull market complex, but denied that the bear market mentality is still its market.
Why is there such a very contradictory phenomenon?
First of all, we should say the same about people's habits of thinking. Chinese stock market has been running for 10 years, but it has long been in a deep-seated contradictions in the constraints, the market itself is not perfect, the lack of long-term investment value. It is because of this, leads to operation in the stock market tend to do short-term, keen to get a short bad. This operation thinking it should be said in the past to be effective, it makes it a good market environment in the less able to protect themselves from being bearish, "swallowed." However, in the face of the stock market nowadays, if you still operate according to such a habit, then it will not tune in. Especially in the stock market all the way up the course, many people due to frequent short-term operation and continued to be rolled blank. In such a state of mind, if the stock market has high shock, it will naturally think that the head is up.
Secondly, it should be noted that for the current round of stock market rally, the market analysis and comparison of many from this point of view of excess liquidity to carry out, as right because the system of change and growth performance of listed companies impetus generated by the relatively less. Such an outcome, it is making people more money to promote from the point of view to understand the stock market rise. And experience tells us, if only by pushing funds is not possible to support the true sense of the great bull market. No need to deny that excess liquidity is the stock market is indeed a major factor in rising, but the situation had not appeared until last year, after doubling in the broader market indexes also able to rise, people should be more inclusive perspective to explore. Otherwise, you can not understand the driving force behind the stock market rising, the operation must bear thinking on the subject, there is no long-term operation, adhere to the courage to see the high line.
The third reason is related to changes in the market hot spots. Since last year, the market has changed based on shares of stock as the focus, but in May last year, after the first around the non-ferrous metals, aerospace defense industry make a fuss about such a subject shares, after hot concentrated in large cap stocks. At that time, the disk's performance is a typical "28 phenomenon." Market to develop such a consensus: the current bull market is a structural one, and only a small part of the stock can rise. But by 2007, this situation has changed again, objectively speaking, people see a "82 phenomenon." This phenomenon is reasonable? It appears based on that? Obviously, these questions still have doubts about the market, since the lack of sufficient and convincing reasons, then some people will use the last analysis, the stock index at a relatively high when stocks broad based, especially the vulnerable stocks compensatory growth market, as the broader market peaked signal. This way of thinking may sound plausible, but there is a fatal flaw, that is divorced from the actual market. In fact, if a closer look at those compensatory growth stocks price-earnings ratio is now know, because they enhance the performance, in fact, even in comparison with a number of large capitalization stocks, the valuation is not necessarily on how high.
Should be said that long-short market, differences will always exist. However, if the bull market, bear market mentality Complex and coexistence, and this contradiction is reflected in the body with an investor, which is worth studying. The main problem is one of the changes in the market, lack of knowledge on the characteristics of Quotes on the lack of in-depth analysis. Only an accurate understanding of the market there, with the right ideas to guide the operation, can we truly share the results of a bull market.
