Earthquake the stock market suffer property

 Earthquake the stock market suffer property
This article first appeared, induced by the policy of the Chinese property market, market investors to make a lesson on the city risk education classes.
property m m stock of the linkage between the cities can have two interpretations of the one called the grounds that the property market stalls, capital flight, would choose to enter the stock market; second is The association is very strong,UGGs, usually stock and property markets would not change the synchronization of shocks. In other words, the property market uncertainty will affect the stock market, stock market sentiment will leave a shadow side, watching the stock market to further strengthen the current atmosphere. property market turnover dips, but funds may not be immediately switched to stock market because investors willingness to invest to improve the stock market because of higher stock market liquidity. Conversely, falling house prices or expected prices fell, the stock market investment will also fall.
investing in a ; in the higher degree of risk diversification of assets,UGG boots cheap, asset volatility to low, but because of China's investment products is limited, the general population may be almost the only stock market investment property market, so in the cities of the acceleration phase, the property market investment demand is rigid policy guide property funds into the stock market.
since August last year, the stock market was box shocks, volatility, narrow gradually. However, if you do not look at index and look at the growth of market capitalization, the current stock index corresponding to the flow of 3000 far more than the market value of stock index in 2007 over 6000 levels in the .2010 expansion in the Chinese stock market and the circulation of the year, the stock market to hold the stock index jumped 3,000 points, third in global market capitalization, a real Resources Power.
part of the funds the property market will be driven by the earthquake, all failed attempts to break the uplink, market sentiment has been cooling, this time, the property market psychological shock like an earthquake worse, so Tiger's stock market poised to finish, in the second half may be dragged before the fourth quarter will once again launch impact. Why? one of the reasons is the property market. the current round of policy for sustainable earthquake is expected to more than six months, house prices fell sharply, although difficult, but there will be 9 -10 months of stability. 70 cities this year, house prices in March jumped 11.7%, overdraft in the next 10 months of gains, so the direct intervention of the policy, the future trend of prices will be mixed, from over quickly into a steady rise, while the standard is steadily rising about 1% per month of modest gains. Once the property market rose to stabilize, eliminate panic, the financial performance of property stocks in the real growth will emerge, once again the power of the stock market upside launched .
in the modern market economy, the stock and property markets and the macro is a passenger on a boat, a loss for both sides, a prosperity, there will be first come first served between short-term divergence, but not long-term retrograde. In China, the investment-driven economic growth is highly dependent on the growth of money supply, money-driven bubble recovery if not timely transmitted to the real economy, not of the virtual as real, saved the day. currencies heavy volume, the stock market increased 3-6 months will be transmitted to the prices rise, then transfer to 50-60 related industries. At this point, the recovery of virtual entities into the recovery, the recovery of a bubble can be converted into the fundamentals of recovery. transduction sequences from this perspective,cheap UGG boots, the property market is the economic recovery from the virtual to the physical conversion medium, price / price spiral of interaction from the law of economic cycles.
irrational exuberance of Chinese property market still in its sole economic driving force, that is, the trend of urbanization, population movements and currency movements, Therefore, the irrational exuberance of the property market in the city only when the completion of the termination of the basic, predictable time window is 2025-2030 years. Prior to this, although there are other economic cycle may lead to both stock and property markets in the fall,UGG bailey button, but always The main risk is not to prevent sudden decline, while the irrational boom!