Category: Money Tips Date: 2007-05-10
Source: Chen Shi
Raise interest rates this week, the stock market experienced a variety of bad, but the broader market not even a record high of 4179 points, closing Friday, has been standing for several days above 4,000-point mark. It can be said about 4,000 points, the shock has been completed in the broader market has begun a new round of Quotes.
3000 points, a lot of people, especially economists believe that China's stock market bubble on the weight, and many investors fear the throw for this stock, now appear to be thrown on the floor. The recent stock market reached a record 4,000 points, some scholars say that it is too big a bubble, policy no longer necessary to control the stock market crash, and always seemed to frown upon the stock market higher. However, the stock market is so doggedly new record high. Why do some scholars to judge many be wrong? Even the stock market is a barometer of the economy have turned a blind eye to this simple principle. The answer may be nothing more than two kinds, either intentionally suppressed the stock market, little is known about either the law of the stock market, lack of experience.
Invest in the highest plane of the flow, no one can change the market trends. As investors, we should adapt to the market, without interference by those scholars.
Currently, the market peaked on the broader market concerns are still very common. Indeed, many investors have seen so much of the gains neither. However, the basic rules of the stock market tells us that the real top of the form not in fear, but in the midst of optimism in the unconsciously generated. Now many people are on the market have the mentality of fear, this time, in fact, the contrary is safe. Greed in the market when the fear, greed in the market fears, which has applied successfully for the opposite theory.
In fact, from a technical point of view, such a small yang to enlarge the volume up and the moderate and did not feature the typical peak. The mainstream of the market shares, such as banking stocks and blue chip companies, have no sharp rise. This heavyweight stabilize the broader market and individual stocks active in the situation, but also the relative safety of the market performance. Only when the heavyweights rose and promote the index surged before the market could trigger a large-scale sell-off.
The immediate focus is still the problem of excess liquidity, the market too much money, and supply and demand imbalance will inevitably bring about price increases beyond the imagination. B shares is very typical spike is backed by funds in Fanyunfuyu because the B-share market is too small, the periphery of the dollar and Hong Kong dollars too much, B shares may continue to madness. The A shares for a long time there is no listing of new shares of the broader market, the management although the rush to market with plenty of new shares to stabilize market demand, but it appears new shares merchandise in the embarrassing situation of not being an effective balance between supply and demand, the market will continue to rise.
Friday brokerage stocks rose again, why such a strong brokerage stocks? Quotes better then the volume will be larger, then the broker is bound to benefit from the large volume, it is a bull market can be described as the largest brokerage unit of the White Horse Unit. If convinced that this wave of the bull market to continue until 2008, then the rise in brokerage stocks is still great potential.
Recently we have been stressing steel, coal underestimate the value of the stock is currently involved in funding the new focus of attention this week, iron and steel and coal stocks have gone very well continue to be optimistic market outlook. We believe that the also concerned about the small plates, small plates always have linkage effects, but overall performance is not a recent strong compensatory growth afternoon should have the opportunity, not to mention small and medium panels are highly speculative stocks, once rose up and also very powerful. 10 transfer of such shares as HUBLOT 7 small-cap stocks, as well as price-earnings ratio is only about 30 times the cap, lower-Guangdong utilities, are expected to usher in a wave Quotes.
