Category: Money Tips Date: 2006-06-05
The recent rapid market decline, rational analysis of the reason, we found more of a factor of speculation, there is no fundamental factors. Although the market rose to 1,300 points from 1,000 points, or 30%, but because the reasons for the market's overall valuation of stock reform, and does not go up 30%, taking into account the market value of more than half of the company has completed the share reform, since the first day of stock market reform is not included in indices, so that stock reform pull down the market's overall valuation of 15%, so the overall market valuations rise there is only one into a more than 15 times the current market price-earnings ratio is only about a mature market in Hong Kong and international roughly equal, taking into account the domestic economic growth rate in the world's leading interest rates Also at the world's low-end, A stock valuation there is room for growth.
Many investors have recently received a phone call from the core issue is that we should predict how the market will change in the next stage, it is difficult to answer. As this adjustment in any adjustment as in the past, as everyone anticipated, and we can not predict tomorrow Change the broad market.
In fact, for securities investment, the correctly predict the market success of the short-term investments is not the key to Change. Throughout the ages, the world's greatest masters are not to rely on the investment success of market forecasts, but mainly rely on the investment objectives of the correct understanding of the object.
Last year, we also did a statistics, more than 1,300 companies and 120 companies listed on the day of play from the December 31, 2004, will give investors an annual return of more than 10%, there are a number of companies accumulated to a investors with more than 1,000% return, such as in the set, Yunnanbaiyao so. Is in the last four years and a half, tape cut in the index case, there are still a number of companies hit a new high.
In fact, investment securities, earnings should come from the listed company itself, caused the company's growth from capital appreciation, this profit model in terms of the market is a win-win for all participants, bringing the market's overall value, which kinds of profit model can be sustained. Speculators who bet on a market forecast of its profits from the market, the profit model is a zero-sum game, the other one earns is a loss. Taking into account transaction costs and other factors, this model for all participants, it is a lose-lose game, it can not bring about the market's overall sense of the value-added. Therefore, for investors, concerned about the company itself than concerned about the market's Change is more important and more easily. (The author is Guangfa Investment Management Fund Management Co., Ltd. General Manager)
