Author: zglobal

CHINA STOCKS TO CRASH?   [Copy link] 中文

Post time 2012-5-26 23:15:19 |Display all floors
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Roach Exterminator

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Post time 2012-5-27 10:03:20 |Display all floors
The high PE means that the investors have trust in the invested company's future earnings. But the extreme high PE just means the bubble of the stock is too high. From the figure,we can see that chinese people is not rational.They just go with the stream. They have no individual idea. That is also what happens to the people around us.When one person says this stock is good,then the other people hear that will also buy.And many times the stock price will rise just becasue many people buy it following others. But the bubble will definite break. That is why our stock market has returned back to ten years ago.

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Post time 2012-5-27 22:12:18 |Display all floors
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Roach Exterminator

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Post time 2012-5-28 01:35:53 |Display all floors
wisdom_pang Post time: 2012-5-25 15:57
...and Facebooks PE?

Selling the stocks with a book valuation of near $105 billion, but earning pro ...

that zg is gwei.lo quacker duck

everywhere zg goes, he quacks out loud loudly

No brainers
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2012-5-28 11:07:38 |Display all floors
zglobal Post time: 2012-5-27 22:12
A very sound post Samuel.

I think there is not a lot of understanding in China of the real financ ...

China Stock market is like NASDAQ.

"Punters outnumber Investors"

ha ha ha

Cheerios!

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Post time 2012-5-28 12:07:14 |Display all floors
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Roach Exterminator

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Post time 2012-5-28 12:11:03 |Display all floors
zglobal Post time: 2012-5-28 12:07
Yes I think you're right.

I wonder how many even know what a P/E is.

The SYMPTOMS of TOO MUCH CASH in the market.

.......don't worry, China will be INCREASING the MINIMUM WAGES so as to increase consumption and changing the pattern of income distribution.

The high price of BEIJING, SHANGHAI real estate is the other symptom.
Perhaps, fast >6% plus growth will help the CHINA STOCK MARKET to achieve rational P/E.
(At the moment, the BIG P/E ratio is the MARKET REACTION to the "high growth" potential of China!)

Cheerios!

Green DRagon
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