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Market sentiment is at a high level now in the BSE

It’s not surprising that the Main-Board Market, aka the benchmark Shanghai Composite Index, the Shenzhen Component Index and the Growth Enterprises Market, namely the tech-heavy ChiNext Index opened lower and closed higher due to the face that the stocks in the Beijing Stock Exchange took a nosedive in late trading in various adverse conditions. After all, the seesaw effect should have taken shape given that the stocks in the Beijing Stock Exchange will plummet in succession if other markets rise in today’s polarized environment. There is little doubt that the ill-fated hard-pressed innocent retail investors are excited that a slight bear market rally came in time in the already berserk domestic equity markets at a delicate moment. Today it’s very palpable that the stronger-than-expected market performance and weaker-than-expected market correction should have showcased more signs of upward trend in the Beijing Stock Exchange in the brutal market environment. The ill-fated hard-pressed innocent retail investors seem to have realized that the words from the top level were a great encouragement to domestic capital over the past few weeks. That should have reinforced a view that the top level seems to acquiesce in speculation given that propping up market run in the Beijing Stock Exchange is intended to stave off the redemption funds before they expire. There is ample evidence suggesting that the current robust rebound in the Beijing Stock Exchange should have given the retail investors’ confidence about the upward trend for the remainder of the year. To be sure, the already gradual level-headed veteran retail investors haven’t ruled out other regulative measures in the short term because the previous red-hot stocks halted today. To be honest, the biggest concern is that a spate of uncertainties will beget a drastic market correction in the environment of a renewable vigorous market selloff. Nowadays, the retail investors not only believe, but know a fact that the upside is far from over in the Being Stock Exchange when other markets underperform under the weight of market correction. Consequently, it’s hard not to draw the conclusion that the stocks in the Beijing Stock Exchange will pare back their losses as soon as tomorrow or as late as Friday. Generally speaking, some retail investors still remain confident that they should have geared up for a strong return to the stocks in the Beijing Stock Exchange tomorrow. In addition, the savvy control risk pundits, the ever-optimistic market observers and already gradual level-headed veteran retail investors wouldn’t be surprised if the benchmark Shanghai Composite Index suddenly fall below 3,000-point mark at some point next month because of an extreme aversion to risk.

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