The Average Price Earnings Ratio Of GEM Stocks Has Exceeded 90 Times.

The current stock market is short of competition between the 3400 sides.

There is a certain divergence in the market. On the one hand, the stock index has entered the intensive trading area.

After all, this year's seven or eight month rescue market, 3500 to 4000 points is the market intensive areas, the stock index to stand on this interval, obviously not overnight, inevitably there will be some repetition.

On the other hand, it also has a certain relationship with the high valuation of the A share market.

For example, in the recent rebound, small and medium stocks, represented by GEM stocks, are the vanguard of the rebound.

But the price earnings ratio of GEM stocks is obviously difficult for investors to feel at ease.

Despite the pressure from the previous stock market crash, after the recent rebound, the average price earnings ratio of GEM stocks has exceeded 90 times as of yesterday (October 19th), reaching 90.86 times.

The average price earnings ratio of small and medium board stocks is also 55.41 times.

Shenzhen's overall price earnings ratio reached 44.04 times.

Is A shares really cheap? This view should be one-sided.

For Gong Fangxiong's point of view, "A shares cheap" mainly refers to blue chips.

From the relevant reports, Gong Fangxiong repeatedly referred to the "big blue chip".

For example, Gong Fangxiong thinks that A shares are so cheap that there is no reason. "Especially for some big blue chips, the P / E ratio is only 4 times to 5 times, but the dividend yield is 6% to 7%".

Also, as Gong Fangxiong said, "many of the blue chips in the A share market now have a dividend yield of 6% to 7%, which is far more than 4~5 times the P / E ratio."

Gong Fangxiong said that these blue chip stocks with lower price earnings ratio and lower dividend yield have clearly met Buffett's iron rule of investment.

If we draw the conclusion that "A shares are so cheap", it is obvious that there is a suspicion of generality.

When investors see Gong Fangxiong's "A shares so cheap" point of view, we must see Gong Fangxiong's specific reference.

So, although the Shanghai stock index, representing the A share market, ended by October 19th only 16.73 times the average price earnings ratio (not what Gong Fangxiong said, "A share is about 10 times to 12 times", "A share is about 10 times to 12 times" is actually the average price earnings ratio of the Shanghai Composite Index 50), but this price earnings ratio index does not reflect the true level of A shares, so that "A shares are so cheap" is just a representation.

And this appearance is even reflected in Gong Fangxiong's promising industries.

In this 2015 private equity investment forum, Gong Fangxiong said, "at present, A shares are so cheap that there is no reason". At the same time, they also claimed "optimistic about".

Future financial innovation services, medical health and TMT (technology, media and communications) three major industries.

In fact, in the three industries that Gong Fangxiong favors, besides the financial category that can be included in the category of "cheap", medical health and TMT obviously do not belong to the category of "cheap A shares".

The stock price of these two industries is much higher than that of many stocks, and some of them even reach 1000 times.

It can be seen that even the industry that Gong Fangxiong favors is not "A shares are so cheap and unreasonable." in fact, some stocks are already "very cheap".

And it is in the A share market desire to rise to the tune of the mouth, the market came to Morgan chase, former Asia Pacific region managing director Gong Fangxiong for A shares inflating voice.

In a recent 2015 Private Equity Investment Summit in Shenzhen, Gong Fangxiong said, "A shares are so cheap now that there is no reason".

As soon as Gong Fangxiong's views are heard, investors are greatly concerned in the market.

It is also for this reason that investors should be cautious about Gong Fangxiong's "cheap A shares".

In particular, we should treat A shares differently.

Not because Gong Fangxiong said, "

"Investors are worried about eyebrows and beards.

After all, the A share market now has both "cheap" stocks and "not cheap" stocks.

Moreover, even the "cheap" stocks, such as banks with generally low P / E ratios, have seen a slowdown in their performance.

Moreover, for investors, "not cheap" A shares also need attention.

Actually

Optimistic about "medical health and TMT" belongs to the "not cheap" category, so investors need to invest not only "cheap" theory.

In particular, we should be optimistic about the growth of enterprises and the development prospects of the industry.

Especially for the current small and medium sized stocks, it is far more practical to pay attention to the growth of enterprises and the future development of the industry.