Tuesday, November 23, 2010

When the stock market bubble is more bigger and bigger

 High-frequency have been a little numb.
domestic institutions when securities firms last year, funds are not bullish on the stock market this year, when, unconsciously, a double the dollar. and, later still in upward expansion of space.
record high of 6124 points from the beginning of the fall in the production and spread of financial crisis, under the influence of their help when the next stock market bubble burst, A share market has experienced a After the stock index plunged Qicheng, especially at the top to save the economy forces many measures to save the stock market, the stock rebounded this year, should be understandable, but the magnitude of the rebound and apparently unexpected.
and stock index the short term from 6124 points to 1664 points down similar to a strong rebound from the lows last year, also in just nine months after the index that implements the double. And what round up the final point to reach, is still unknown.
history will not simply repeat, but are often strikingly similar. This year's stock market, with many of 2007's is also a corresponding rise in the number; the issue of reproduction of the new fund hot scene late last year, blue-chip heavyweights and carry the banner of the stock market, the index from a peak towards another peak; securities investment funds in general the trend in high positions, even positions of the fund over Jiucheng many as one hundred; any non-listed companies bad information,UGG bailey button, can lead to a sharp rise in stocks; asset restructuring of listed companies, private placement in full swing; most important funds and other institutional investors are still in the Where?
look, even if the financial crisis last year, did not factor in the crash of stock index also inevitable, the financial crisis is only acts as a the market is a bubble bursting in air, has also long been foreshadowed for the crash.
data from the Shanghai and Shenzhen Stock Exchange that, as of August 4, Shanghai-listed companies up to 30 times average earnings, up in Shenzhen 42 times. From the analysis of individual stocks, Shanghai and Shenzhen more than 50 times price-earnings ratio reached 701, more than 100 times amounted to 417,bailey UGG boots, less than 30 times price-earnings ratio of 212,UGG boots, however, only 20 times lower than 63, low 10 times in a miserable 7. Therefore, on the whole, the current A-share market is not much real when the average price-earnings ratio below 20 times the two cities, more than 30 times to the present, the market hype, release of the new fund issue, coupled with the central bank restart and did not bring a new atmosphere for the market, instead of a bubble. IPO first single Guilin Sanjin,UGG shoes, Kazuma cable, home run three already covered in published 20 times earnings, Sichuan Chengdu, suffered storm fried the first day of listing, but also escape the price is that if the expected economic recovery can not be achieved, the high valuation of stocks will lose the support of performance of listed companies in the stock market bubble is more bigger and bigger, the market will once again usher in perhaps the dire consequences.
I hope this is only The author of the alarmist!

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