Market Review and Trends
Mistake #5 – Price is a positive correlation of emotions
By dzwm87  •  March 22, 2012
I am not sure how many of you are invested in HK stocks but the rally since January has hit a reversal. Ever since Premier Wen revised China’s growth to 7.5% (from 8%) and an affirmation that property prices are still on a high, the HSI & HSCEI have both corrected back to their January lows. And the most absurd was the rumored military coup in Beijing! People, like myself, who are not accustomed to the volatility of the markets may start to doubt on their convictions. But really, the key was to go back to the fundamentals and to confirm if anything was amiss with one’s due diligence. And this led to one conclusion: as much as a falling price may prove to be a contradiction to the underlying fundamentals of a business that is still going strong, the same goes for the opposite. Prices that corrected too rapidly due ......
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By dzwm87
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