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As a mainland investment banker, I am often asked if the China stock market is overheating. Of course it’s not! Look at the indicators. First, my bank account is enormous. Second, if you INVEST money in a company you will MAKE MORE money – that’s how stock markets work. Third, everyone has been saying for years that China’s market is growing. Everyone can’t be wrong, can they?
Let me take a question from a reader. Mr. Lam from Zhuhai writes: "I’ve heard the China stock market is like a big casino. Is this true?"
Yes, it’s true. Everyone is friendly, and beautiful girls are your friends while you’re rolling high. And there are free sandwiches. But there is one big difference: unlike a casino, in the mainland stock market you ALWAYS WIN!
Next question. The CEO of a prominent mainland toothpaste company (now under indictment for melting consumer enamel) asks, "Now that my company is about to go into liquidation, do you think I should sell?"
Of course not! Though it may seem that the company’s stocks are in danger, this is actually what experienced stock experts like myself call a "self-correction." Let me "correct" your "self" delusion: in my experience the stock market is invincible. In fact, just the other day, my barber gave me a tip about a hot toothpaste company that’s sure to be through the roof soon. Next question.
Mark Yiu from Shenzhen writes, "The mainland stock market seems to be slipping. Is this related to a lack of financial expertise and experience among our business leaders?"
Mr. Yiu, if the stock market is slipping, would I be sitting here swigging tiger penis juice?
I have one last point to make about the market. It’s not quite as easy as I’m making it seem. Good research is important. How do you do good research? Check the address of any company you want to invest in. If you see the word "China," then BUY!
So, in conclusion, let me leave you with my three Bs for Wise Investment in the China Market: Buy! Buy! Buy!
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