splendid star

Chapter 13 The stock market has risks and you need to be cautious when entering the market
Entering the second half of 2007, China's stock market was still in a frenzy, but the global economic crisis was about to break out quietly. At this time, major financial institutions had gone bankrupt and closed down in the United States, and major financial markets in the world such as the European Union and Japan had also begun to emerge. turmoil.
"The stock market is risky, so you need to be cautious when entering the market." This sentence has been continuously played on the radio of the sales department where Yu Qing works recently, seeming to be a kind reminder to all living beings who have lost their minds.
On this morning, as usual, there was still a long line of people waiting to open an account at the entrance of the business department, and the retail trading hall was still bustling with people. There were cheers for making a daily limit, and there were also quarrels over grabbing a trading computer.
At this time, the TV in the trading hall was broadcasting: "The People's Bank of China has decided to raise interest rates by another 25 basis points." Watching the TV news, with the risk warning constantly ringing in his ears, Uncle Wang realized that the danger may have come. Got it!He thought: Since the beginning of this year, the central bank has raised the deposit reserve ratio seven times, raised interest rates five times in a row, and reduced the deposit interest tax from 7% to the current 5%.All these signs indicate that a new round of macro-tightening policies has been quietly launched in response to the current excessive speculation in the stock market and excessive asset bubbles.
He felt like there was a red alarm going on all around him.As an old investor who entered the market in the 90s, he has experienced several rounds of stock market madness and crashes. The stock market has risks, and he naturally has more sense and sobriety than new investors who have just entered the market.
This year's bull market has already made him a lot of money, and it's time to take profits and settle down.
Thinking of this, Uncle Wang made up his mind, quickly walked to the computer, opened his securities account, chose to sell all the stocks, and then exited the account, all at once.
"No more playing, let's go home." Uncle Wang muttered to himself while packing his things.
"Old Wang, are you planning to wash your hands in a golden basin?" Mrs. Liu asked curiously when she saw Uncle Wang like this.
"Well, it's safe to say that I'm going to take my grandson on a trip! The little guy has always wanted to go to Sanya to see the sea!" Lao Wang said happily.
"I heard that the stock market is going to climb Mount Everest!" Mrs. Liu reiterated. She felt that it was too early for Mr. Wang to leave the market at this point.
"Even if it reaches [-] points, I won't play anymore. The risk is too great. I will just eat the body of the fish and leave the tail to others. People, don't be too greedy and make every penny." Uncle Wang said He glanced at Mrs. Liu.Uncle Wang felt that Mrs. Liu was too gambling and did not know how to give up when things were good. These words were also admonishing her. He could just let her listen or not.Anyway, after debating with her for more than half a year, it's time to take a break.
"Go away, go away!" Mrs. Liu waved her hand, "No one will quarrel with me in the future, and I will be left alone." It sounded like she was angry, but there was a bit of reluctance in her tone, thinking that no one would quarrel with me in the future. After debating with her, I felt a little empty inside.
Compared with most retail investors who circle around Mrs. Liu, Wang Yuqing agrees more with Uncle Wang's investment philosophy. There are no stocks in the world that only rise but never fall.On weekdays, she often takes advantage of the market break at noon to chat with Uncle Wang.
Wang Yuqing feels that Uncle Wang is one of the very few people who still maintains sanity and sobriety. When he is free, he will teach Yuqing how to analyze a stock from technical and fundamental aspects, and how to grasp the trend of the market based on current events.He also told Yuqing that China's stock market has a characteristic that it rises and falls simultaneously.When the wind blows, any junk stock can be speculated to the sky, so we must insist on investing in good companies with value.Because no matter how much a good company falls, it will slowly rise. No matter how much a bad company rises, it will eventually fall slowly.
Before leaving today, Uncle Wang told her many times that he could not understand the current stock market at all. He also reminded retail investors in the sales department hall many times that speculation in the stock market is currently overheated, and the country has repeatedly raised the deposit reserve ratio and Raising interest rates is a signal to tighten monetary policy, and sooner or later the stock market will fall sharply.At this current point, I would rather give up profits than take the risk of losses, because I don’t know when the wind will stop and the tide will recede.But few people could listen to him.
As the saying goes: The stock market is a barometer of the economy.Nowadays, many countries around the world are showing signs of economic slowdown. It is difficult for China to be immune. However, the stock market is soaring, so he has no choice but to clear his positions and leave.
Looking at Uncle Wang's leaving back, Yuqing felt something was wrong. She quietly redeemed her fund and informed her clients to pay attention to risks and reduce their positions.She felt that Yu Yang had a strong gambling streak since he started doing stocks, and she couldn't let him continue to be so crazy, so Yu Qing called Yu Yang and suggested that he sell stocks when he encounters a high point in the near future and lock in profits.
How could Yu Yang, who was already jealous in the stock market, listen to this?
"Uncle Wang is clearing his stock and leaving? Grandma Liu is right. Uncle Wang is just too cautious. The stock market has risen so well. If you don't make good money, why don't you go traveling? I really don't know what he thinks. I If you don’t sell it, I want to continue to increase my position! Now I’m regretting why I didn’t open an account with you earlier to buy stocks! I won’t tell you now, I have to watch the market.”
Seeing that Yu Yang could not be persuaded, Yu Qing had to call Guan Lu and told her that the stock market was now very risky and asked Guan Lu to persuade Yu Yang to reduce his position.
"Yu Yang said that he has made a lot of money since stock trading! Should he sell it now?...Hmm, I listen to the professionals, so I will advise him." I hope Yu Yang can listen to Guan Lu, Wang Yuqing thought, As an old classmate, she has tried her best.
Uncle Wang's departure has also shaken a small number of rational retail investors, but most of them are bullish like Mrs. Liu.Who has a grudge against money still has the influence of a golden rule.
"I heard that the stock market will reach [-] points!" Retail investor A said excitedly.
"Why did I hear some experts say that the stock market is now overheated and the risks are very high, so be cautious!" Retail investor B held a different opinion.
"Uncle Wang told me when he left that the price-to-earnings ratio (PE) of most stocks now exceeds 70 times, and the stock price is too high. Does Aunt Liu know what this means?" Retail investor C is a new small investor who has entered the market. He even I rushed into the stock market without understanding what the P/E ratio was.
"The price-to-earnings ratio reaches 70 times, which means that if you invest in a listed company, it will take 70 years to recover the cost. Now the economy is doing well, and it may come back in a few years. His value investment is outdated and not suitable for the current stock market." Liu The old lady said, pointing to the trading software screen, "Look, look, the price-to-earnings ratio of the stock I hold is over [-], and it has risen by five points today. He can do his own thing, and who can do it these days? Money is so hot!" After saying that, Mrs. Liu burst into laughter.
The retail trading hall is still lively, and it has not changed because of Uncle Wang's departure. People are echoing each other, exchanging stocks, and enjoying the great joy of making money while lying down. At this time, everyone feels that he is a stock god. .Some people compare it to the water in a pond rising, but the ducks on it think they have risen on their own.
　In 2007, in order to curb asset bubbles, the central bank adjusted the deposit reserve ratio 10 times and raised interest rates 6 times.
　
(End of this chapter)