Stock Market Is Still The Best Channel For Resource Allocation.

Risk is rising and opportunity is falling.

The stock market is still the best channel for resource allocation, and A shares are related to the overall situation of reform.

Believe that in the lonely ocean, with the bubble going, valuations will gradually become reasonable under the impetus of reform.

It's very hard to see a set of data.

As of January 13th, all sectors of A share were net outflows of funds, and there was no lifeboat in the A shares.

Now, what stage is the stock market going to bubble? Is A share expensive or cheap? Can the SFC's repeated orders control the large shareholders of cash flow? Who can save A shares?

There are two industries that are net inflows of capital.

But by January 13th, all of them were net outflows.

As you can imagine, there are always people in the casino who want to gamble at the worst of times. Now the situation of A shares is that everyone has changed their chips into silver, and the adventurers who gamble in their pockets have not.

What is even more embarrassing is that the net outflow of capital is ranked first in medicine and biology.

There is a consensus in the market that medical organisms are defensive industries in bear markets.

During the stock market crash, the defensive animals were sold out by the main force.

The lifting of the ban on the sale of shares is like a knife hanging on the head. Many people say that after January 8th, few major shareholders sold out, proving that industrial capital is still very confident.

Don't be ridiculous! The stock market of dozens of times or even hundredfold of the gem is everywhere. It is a question whether we can get back from the Ming and Qing Dynasties.

The power of industrial capital to cash in is still strong. They are just afraid of guns.

However, now that the polarization of A shares intensifies, can the value of the main board carry the speculative bubble of small and medium sized enterprises?

If there is "money plus assets shortage"

Spillover effect, I believe that funds will like to look for real growth stocks that are supported by performance, rather than just the old stocks that only have no concept of substance.

This is why we have always believed that 2016 is a very important basis for real value investing in the first year.

But even value investing requires a good regulatory regime and a good regulatory environment.

After the people's hearts, now the registration control rhythm has become a strategy to save the market. Is there really no lifeboat? The securities and Futures Commission has vacant so many positions.

The following group

That is, the valuation data deserve our attention.

The Shanghai composite board has a 14.78 times earnings ratio, 70 times the highest in history and 10 times the lowest in history.

Shenzhen's motherboard has a 25.70 times earnings ratio, 76 times the highest in history and 14 times the lowest in history.

The price earnings ratio of small and medium sized panels is 54.61 times, 90.83 times the highest, and 18.48 times the lowest.

Gem is now trading at 86.61 times earnings, 146.57 times the highest in history and 26.51 times the lowest in history.

From the above data, we can see that the Shanghai and Shenzhen motherboard's P / E ratio is not high, especially the Shanghai stock exchange board, which is at a low level of valuation.

But the small and medium-sized board is still at a historical high.

Risk is rising and opportunity is falling.

The De Lin society firmly believes that the stock market is still the best channel for resource allocation, and A shares are related to the overall situation of reform.

Believe that in the lonely ocean, with the bubble going, valuations will gradually become reasonable under the impetus of reform.

In the face of a less optimistic situation, perhaps shareholders will say that the rubber ball that has been put up is hard to get up.