Golden Years of the stock market Exist

This year, the market continues bullish. But in this year's report and other occasions, I have been asking for had such a view, from a historical point of view gains rate, now Liu Xing of China's A share stock market the next "golden years" may not exist. This means that, for the past 16 years, the stock market rate of return is too high, if Sigel of the U.S. stock market history, the convergence of long-term yields in China's stock market is also applicable to deep KLCI example, the high point of the region this year to do combination of "long-term investment\

This means that though the current bull market, "cow" was Huan, the future may also come only a short term bear market or bull market of the future, most of the time is still a bear market. Only the conclusions of this sensational bad at the time put it "white" because now is full of so-called "great nation\

this conclusion, "reliable" it? Let us look at the phenomenon of the stock market right now:

1. A lot of virtual companies "birth" of the. More than 10 times the company's book value, meaning the value of his company of "intangible assets" accounted for more than 90%, while only 10% less than tangible assets. The year before the Nasdaq crash, but also many of these companies. What happened then?

2. Excellent performance on the market for a long time the company, its PE has now generally fired to 70-90 times. I remember in 1997 when the hottest blue chip stocks, was the best image of the market, the largest share of deep imagination PE technology, also 70 times the maximum moment, Shenzhen Development also 60 times PE (I was stunned), and later on formed 9 years of Shenzhen Component (blue chip index) history major top!
... ...

Therefore, this market, as investors, you should not be now popular concept of the market to "brainwash\some: the pricing of common sense to continue with two years ago, the market for now, to see how you hold the company worth?

course, this does not mean that investment should cease. I said, the highest point of 97 years, bought the then little known performance "almost" good of the shares of China Vanke or simply underperformance of the popular stock Bai Yao, years later, you are eligible and Buffett compared the average investment rate of return; But if you continue to hold those at the "great hot" stock, I'm sorry, no one can be worthy of your own expectations. I would say that the future will definitely have this really great company's future, they are the kind of ability to make money on their own rather than rely on the industry situation and profitable company. In this connection, I would like to remind the fact that:
Taiwan currency appreciation during the boom in the stock market bubble burst in general, the Taiwan Electrical and Mechanical Co., the company is done and the market was also essential to maintain and fire what banking once the most , real estate companies are now gone? A friend checked the information, its value is basically back to "home" of the.

What enlightenment?

should calmly consider the question: are these hot stock, then what are the results so good? Two years ago or earlier that they are what results? If China's economic or industry, major changes have taken place, your competitors in company performance can have confidence in it? This is the only consideration when future investment. What is the population of red pear, the rise of great powers, such slogans, to economists and pundits to consider or Qu Han Fei brains it.