Category: Money Tips Date: 2007-07-04
The stock market is a barometer of the economy and its inevitable with economic development trend of gradually getting better. From a global perspective, economic growth will inevitably bring about a substantial growth in the stock market, the stock market gains should be greater than the rate of economic growth and inflation combined. China's GDP from 1980 to 2005, the 25-year period, an increase of nearly 6 times as high as 76% compound annual growth rate in the next 20 years, average annual growth rate of China's economy is also expected to reach 7%, can be predicted that China's economy will have a very healthy development.
From the end of last year to the current rise in market, has enabled many investors feel the bull market breath. But now many people also have their own concerns, one of the larger concern is that the old and new draw up the rear, refinancing re-open their floodgates, A-share market will reproduce the look of new capital market fled picture. For this really happen?
Some time ago "issued by listed companies, securities issued Regulations (draft)", with strong guidance and operational, in some respects, the management obviously takes into account the affordability of the current market, giving investors ate a reassurance. Investors should see this in the current market, all of our investments are in stock basis, and solve the deficiencies in the system after the IPO will be a large number of high-quality stocks to add fresh blood, lay the basis for the bull market.
In addition, A shares of the bull market still has a lot of support points. For example, have a more reasonable valuation levels, as well as RMB appreciation expectations. Previously, we have repeatedly emphasized China's stock market as the upcoming launch of the rocket engine is extremely fast growing Chinese economy, the RMB appreciation and other factors acting as a fuel, it now appears that this trend is more clear.
It is precisely because of this bull market expectations, as well as the stock market relative to other investments of higher returns in all areas of the capital are being constantly poured into the market, the market liquidity greatly enhanced.
Next, investors need to consider the main problem is that in a bull market, how should we invest? Can we do? One of the most pertinent suggestion is to change the bear market mentality, selecting the right stocks, firm hold, do not be afraid of an upward trend in small and medium fluctuations and callback, and do not choose when attempting to band operation. Multi-Experience has shown that long-term is gold, the game short-term market fluctuations, people tend to nine people lost 10, band attempted to operate in a bull market more people will lose a lot of opportunities in these areas, there are many lessons, it is worth drawing investors. For example, the great bull market in the United States, some of the stock's share price rose to one U.S. dollars from 60 dollars, doubled 60 times, but many investors to the 10 U.S. dollars when they throw away the fear of high compared with the subsequent rise in stock prices, this is simply petty profits, so sights bull market trend, selecting the right stocks, you should hold firm.
I believe that the fact that the large Niugu in China is to start a big bull market would surely appear, in fact, such stocks in recent years the A-share market is also not uncommon. What is needed most upstanding should be our mindset and operational strategies. (The author is the Department of INVESCO Great Wall Fund Managing Director)
