Macro interpretation of the stock market (2021-11-02) Now because of various changes in the situation, coupled with the sluggish trend of the market, everyone has begun to panic, in order to avoid becoming a leek that chases up and kills the fall. The first point of reflection is why is the valuation of S&P always higher than the CSI 300? The second point of reflection is whether the US stock market is rising every day just because the Fed releases water? The third point of reflection is whether the stock market bubble is about to collapse? The fourth and most important point is that many people worry that the economy will enter stagflation, which will further depressed the stock market.
<h1 class="pgc-h-arrow-right" data-track="1" > now because of various changes in the situation, coupled with the sluggish market trend, everyone began to panic, in order to avoid becoming a leek chasing up and killing the fall. </h1>
Today I will use a picture to tell you what to do!
This chart is the P/E ratio trend chart of the CSI 300 and S&P 500, do not underestimate a chart, from which you can find a lot of answers to the questions that everyone wants to know.
Macro interpretation of the stock market (2021-11-02) Now because of various changes in the situation, coupled with the sluggish trend of the market, everyone has begun to panic, in order to avoid becoming a leek that chases up and kills the fall. The first point of reflection is why is the valuation of S&P always higher than the CSI 300? The second point of reflection is whether the US stock market is rising every day just because the Fed releases water? The third point of reflection is whether the stock market bubble is about to collapse? The fourth and most important point is that many people worry that the economy will enter stagflation, which will further depressed the stock market.
Comparison of CSI 300 & S&P 500 P/E ratios
For example: Is the stock market about to burst the bubble? Is the U.S. stock market rising every day because the Fed releases water?
<h1 class="pgc-h-arrow-right" data-track="14" > the first thing to think about is why the S&P valuation has always been higher than the CSI 300? </h1>
Because most of the S&P constituent stocks are Internet technology stocks, while the CSI constituent stocks are mostly bank and financial stocks.
Macro interpretation of the stock market (2021-11-02) Now because of various changes in the situation, coupled with the sluggish trend of the market, everyone has begun to panic, in order to avoid becoming a leek that chases up and kills the fall. The first point of reflection is why is the valuation of S&P always higher than the CSI 300? The second point of reflection is whether the US stock market is rising every day just because the Fed releases water? The third point of reflection is whether the stock market bubble is about to collapse? The fourth and most important point is that many people worry that the economy will enter stagflation, which will further depressed the stock market.
S&P 500 constituent stock
Macro interpretation of the stock market (2021-11-02) Now because of various changes in the situation, coupled with the sluggish trend of the market, everyone has begun to panic, in order to avoid becoming a leek that chases up and kills the fall. The first point of reflection is why is the valuation of S&P always higher than the CSI 300? The second point of reflection is whether the US stock market is rising every day just because the Fed releases water? The third point of reflection is whether the stock market bubble is about to collapse? The fourth and most important point is that many people worry that the economy will enter stagflation, which will further depressed the stock market.
CSI 300 constituents
So don't worry, although we have the pressure of anti-monopoly policies, this is to regulate the Internet rather than suppress the Internet. Of course, hard technologies such as new energy and semiconductors are important, but without Internet soft technology, hardware equipment is not equivalent to a soulless shell?
<h1 class="pgc-h-arrow-right" data-track="15" > the second point of thought is that the US stock market is rising every day just because the Fed releases water? </h1>
First of all, the Fed's release of water must have a very critical role, but through the trend of the price-earnings ratio, it can be seen that since April this year, the price-earnings ratio of us stocks has dropped sharply, but the U.S. stock market has not fallen, and it has reached a new high every day, then there is only one possibility, the profits of U.S. stock companies have increased significantly, and the operating efficiency of enterprises has increased significantly.
Macro interpretation of the stock market (2021-11-02) Now because of various changes in the situation, coupled with the sluggish trend of the market, everyone has begun to panic, in order to avoid becoming a leek that chases up and kills the fall. The first point of reflection is why is the valuation of S&P always higher than the CSI 300? The second point of reflection is whether the US stock market is rising every day just because the Fed releases water? The third point of reflection is whether the stock market bubble is about to collapse? The fourth and most important point is that many people worry that the economy will enter stagflation, which will further depressed the stock market.
In addition to the Fed's release of water, other companies are also very competitive.
As for our A-shares, the price-earnings ratio has also declined, but it is obtained through the decline in stock prices.
Don't just see the faults of others, look at the advantages of others, and recognize your own shortcomings to make progress.
<h1 class="pgc-h-arrow-right" data-track="19" > the third point of thought is is is the stock market bubble about to collapse? </h1>
First see if there is a bubble in the stock market, and then say whether it will collapse.
Macro interpretation of the stock market (2021-11-02) Now because of various changes in the situation, coupled with the sluggish trend of the market, everyone has begun to panic, in order to avoid becoming a leek that chases up and kills the fall. The first point of reflection is why is the valuation of S&P always higher than the CSI 300? The second point of reflection is whether the US stock market is rising every day just because the Fed releases water? The third point of reflection is whether the stock market bubble is about to collapse? The fourth and most important point is that many people worry that the economy will enter stagflation, which will further depressed the stock market.
You can vaguely see this red dotted line in the figure, which is the central axis of the CSI 300 price-earnings ratio, and the current valuation level is near the central axis, the valuation is not at a high level at all, the bubble is not there, how to collapse.
<h1 class="pgc-h-arrow-right" data-track="20" > the fourth and most important point, many people worry about the economy entering stagflation, which will further depressed the stock market. </h1>
I would say that anything is possible, such as the trade conflict in 2018, which caused A shares to fall below the valuation center and continue to fall for half a year.
Macro interpretation of the stock market (2021-11-02) Now because of various changes in the situation, coupled with the sluggish trend of the market, everyone has begun to panic, in order to avoid becoming a leek that chases up and kills the fall. The first point of reflection is why is the valuation of S&P always higher than the CSI 300? The second point of reflection is whether the US stock market is rising every day just because the Fed releases water? The third point of reflection is whether the stock market bubble is about to collapse? The fourth and most important point is that many people worry that the economy will enter stagflation, which will further depressed the stock market.
But many people don't know that the people who made money in the stock market in 2019 are because they stuck to the victory of not cutting meat in the second half of 2018.
