Category: Money tips Release Date: 2006-01-09
"Cheap but not good goods" as the core concept for equities.
China seems to be no shortage of market economy, traditional, folk proverb is often reflected in the market to survive in the age-old wisdom, such as "cheap no good merchandise, good goods are not cheap," "a price of a sub-sub-goods", which everyone is hanging in the mouth on the "big truth" really is a profound understanding of the price system.
"Talk every day, year after year, month and say" does not necessarily mean that people in real life practices what it preaches. High-value commodities highbrow, but cheap products in China, never seemed to lack of market, in addition to lack of consumer purchasing power and thrift cultural influences, of which there is a real problem easier said than done. But more important is that "cheap" and "good" is relative, we are more focused - with the most appropriate words to express - it should be "cost-effective."
When the "cheaper than the price of meat" into a number of new reasons for investors to select stocks, the Chinese A-share market in the "eradication of 10 yuan shares" under the slogan quickly became a sub-standard market, retail investors do not necessarily believe that cheap is good merchandise, but they are further believe that cap, lower the "price" and "not bought, and only buy cheap" became the venue chosen capital stock principle. Therefore, in the market, even if the intrinsic value of high-priced stocks undervalued than overvalued, but within the cap, lower. Trash stocks, shares themes for a long period of time the market sought after object, multiplied several-fold in Niugu also many in which the produce. High-priced stocks although it can not be no one is interested, but the sharp-cap, lower than the trend seems overshadowed. Into the bull market, the "28" phenomenon to the concept of value investing gradually been taking root, but This time the orientation of the entire market under the impact of complete reversal of the market cap, lower the turns upside from "28" phenomenon into a "82" phenomenon , a loss of Unit and the low-profit unit replaced the blue-chip status, many of the funds to pursue value investing did not even ran tape. The first half of Shanghai stock market almost 700 stocks rose more than 50%, which beat index, only 100 stocks rose less than 40%, which more than 100 only "failure" of the stock Youyi mainly high-priced stocks and large capitalization stocks.
"The poor section is now," the Chinese mainland market, "5.30" fell, after another one month of the dramatic changes in the "cheap no good goods" the golden rule of show in people's front for the majority of investors in a vivid value of the investment philosophy class. Theme stocks, junk stock adjustment in the market's sharp decline, down more than 50% is not uncommon to June 29 closing, about 100 individual stock price has fallen by more than half. About more than 600 individual stocks share price is less than 10 million, of which * ST Wanjie, * ST Dan and so on 53 individual stocks share price has been less than 5 yuan. The statistics show that from May 29 until June 29 closing, the Shanghai index fell 11.86%, Shen Chengzhi dropped nearly 14%, but there are more than 300 individual stocks outperform the broader market, most of which belong to a , second-line blue chips, including Maotai, Hudong Heavy Machinery, Commodity City, and 100 yuan for high-cap stocks in particular, sound, glaring.
Basic concept of economics is balanced, your and less expensive is always relative, the price eventually return to its intrinsic value, so as to achieve a relative balance. Ancient China has a bright child caution everyone that the roadside plums, long so good, definitely acid, or else people eat early. In fact, this is the concept of equilibrium. Of course the market is not balanced, it's just tend to balance, so people tend to look for the market place to make mistakes, and this is an opportunity. But now and in the antiques market, "Jian Lou," as can be met but not impossible. Loss of stock or assets through re-cap, lower injection can indeed "change crow Phoenix", but the information passed to retail investors without any advantage here, tend to markets, not only to the "Phoenix" price, and even a premium. What's more, these "themes" can really become a real money is a profit remains to be the market test.
Well, according to a "cheap no good merchandise, good goods are not cheap" standard, whether stock market really the "only high property prices in"? This is not always the case. High and low stock prices and the general sense there are different products, in addition to the valuation of the most basic indicators of price-earnings ratio, the company's growth rate is crucial. In other words, most worthy of investment, the stock is not the lowest current price-earnings ratio of stocks, but the expected price-earnings ratio of stocks can be significantly reduced. In addition, the well-known, broad market and high prices is a short-term funds to avoid the object, this adjustment has been made in the macro-policy adjustments, short-term funds due to a significant exodus, this does not affect the long-term investment behavior, which is high-priced shares, 6 One reason for the month strong. If the short-term funds to continue to chase high-priced stocks to deviate from the natural rise in the track, then they will be like the sharp correction that followed the rapid rise scenarios.
Therefore, the "cheap no good goods" as the core concept for equities, but the stock market "price" criteria vary Bale. So, I personally think that Fan Gang's "can not let the stock market a better life for too long, too long to be troublesome," is indeed wrong, or could be replaced with "can not lead a better life for cheap stocks for too long, too long to be problem . "
