Thursday, December 23, 2010

Policy should not the stock market down ~ ~ ~

 The current shock is understandable, it is law of the market can not be doubted, but some people think our stock market will accelerate the decline I do not agree. We do not believe that A shares would be a record low, 1664 is the end of the current round of market valuation, the future A shares will find the end results, but should be higher than the valuation at the end. suggest that investors in 2000 to buy more or more near.
pull of domestic demand and promoting consumption, the stock market also need to Weekly clarify the last two rounds of the market become more cautious view, respectively, that , the market (especially in small-cap) was a great increase, this adjustment occurs is normal, limited downside, but structural differentiation will be obvious, but many investors worried about A shares will repeat the Wall Street trends, new lows. < br> We do not believe that A shares would be a record low, 1664 is the end of the current round of market valuation, the future performance of A shares will be looking for the end, but should be higher than the valuation at the end. But many investors are skeptical, We believe that management should plan ahead, the stock market as early as possible, br> (1) more than 50 million households across the country involved in the stock market, mainly working-class and wealthy are the vast majority of investors, Chinese investors are the backbone of the Chinese consumer. The data show that consumer confidence will affect the stock market crash , and the lag of consumption was significantly affected, pull of domestic demand and promoting consumption, the stock market should never be overlooked.
(2) the stock market downturn led to financial deficits, the loss of the fundamental functions of the A shares.
stock market ; revitalization plan, Chinese investors have always been sorry for not escape the dismal fate.
differentiation stocks increased, and the prices before the end of
since the end of October 2008 review of the stock market, you can find clues to clear policies and macro-rebound began at the end .10 maximum driving force is 4 trillion. The Jan. 15 start of the second round of the increase was mainly from the December 2008 loan data, high-speed growth and bring an end to the inventory of production driven recovery. then with the weeks of fall, the market suspected as the economy deteriorated, the rally is already coming to an end?
We believe that the rally is not over yet, 2000 is the stage at the bottom point, should be actively buying near 2000. This is because:
1, although further development of the subprime mortgage crisis, beyond our expectations, but the corresponding policy may exceed expectations, the current economic and political situation like in October 2008, we believe that there will be two substantive policy during or after the introduction of mainly focus on consumption;
2, liquidity is still there. Although the new credit 800 billion in February, dropped significantly more than in January, but still very high growth rate, the current liquidity still full, much better than October 2008, it is not deep down.
U.S. stocks continue to decline and deterioration in the fundamentals of A share investors will create a holdings of commercial retail, food & beverage and pharmaceutical industries, but it must be noted that with the deterioration of fundamentals, stocks differentiation will be increased, blue chip stocks will regain favor, subject shares will continue to fall

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