The Securities Market Is A Rich And Colorful World.

The average investor holding period in the P A share market is short. How to choose a rational beauty market may be more important. In the following two paragraph, we elaborate on the beauty contest based on fundamental changes. The core idea is that no matter what level the current share price is, as long as a fundamental factor has changed or is still accelerating, the stock price can still rise, so it should be bought or sold. < /p >
< p > < < a href= > http://www.91se91.com/news/index_cj.asp > stock price > /a > trend can be roughly divided into two categories: one is static and absolute. At a certain point, considering all the influencing factors, we predict the size and probability of the cash flow of the listed companies in the future, then discount them to get a reasonable price, and the other is dynamic and relative methods. At a certain point, it is assumed that the price in the current situation is reasonable, and then further analysis is made on the fluctuation of the stock price if a fundamental factor changes. < /p >
< p > from a theoretical point of view, the second method is the simplification of the first method, not only the analysis cycle is short, but also the factors considered are less. In particular, due to the assumption that the pricing of the current market is reasonable, the dynamic and relative methods are not so rigorous. For example, if there is only one stock in a field, the stock will usually get a higher valuation level due to "scarcity", but this is difficult to explain from the discounted cash flow. However, from a practical point of view, the dynamic and relative methods are often used by investors because of the shorter analysis period and less consideration factors. < /p >
< p > behind the fluctuation of stock prices is the change of investors' < a href= "http://www.91se91.com/news/index_cj.asp >" short air force > /a >. Suppose that a company's current stock price is at a balanced A. At this price, the buyers and sellers share the same price. No more funds will be willing to buy at a higher price, and no more stock will be willing to sell at a lower price. Then, a certain factor or event will impact the fundamentals of the company. Investors will change the stock price as a whole, and the transaction will drive the stock price up. < /p >
< p > assuming that the final stability is B, it is determined by the profitability of the enterprise, which is a reasonable price. Generally speaking, investors' assessment of stock prices is a dynamic process, so fluctuations in stock prices will fluctuate. For the short term "Beauty Pageant", it is even more important whether or not there will be a peak C in the process of A to B. As long as the yield of C/A is higher than the cost of capital, short-term buying of stocks can get positive returns. < /p >
< p > by observing the < a href= "http://www.91se91.com/news/index_cj.asp" > two level market < /a >, we find that several points determine the height of C: the magnitude of the impact of the event itself, that is, the greater the story, the better the scope of the event itself. If the number of shares involved is large, it will form a "plate effect" to attract more investors' attention and investors' preferences. In a period of time, "some themes" are always easier to get attention. In a topic, "leading" is always the most concern; the smaller the free market, the better the share price. The lower the share price, the better. < /p >
< p > the better the market and the higher turnover rate, the more successful speculation is; the bigger the difference is, the better. When the number of new investments is greater than the original quantity, the most optimistic people decide the location of the high point. So the better the story, the better the uncertainty. < /p >
< p > from the investment point of view, the only focus of the study is "the magnitude of the impact of the event itself" and pricing. But from the above analysis, we can see that there are many irrational factors in the fluctuation of stock prices. If we have a full understanding of the process of "Beauty Pageant" and the determinants of the highest price, we can better identify the nature of the market and effectively grasp the relevant opportunities. < /p >