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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (35236)	8/29/2009 5:44:04 PM
From: Grantcw	Read Replies (1) \| Respond to of 78752

The Chinese market is definitely volitaile, I'll give you that. But the U.S. Market has been also the last couple of years. :) Here are a couple of things I've been thinking about recently: Before the collapse of the last couple of years, I think that many investors in the market had never seen a serious short-term collapse. I think that this affected their perception of risk and risk/reward ratios, which allowed them to bid up stocks to certain prices we're not seeing now. I guess my question is - given that investors have now seen this collapse, is the general investor perception of risk higher, aware of the possibility of this kind of collapse happening again? Will investors bid stocks back up to as high of price/earnings ratios as we've had the last 10 years or so when earnings are back to normal and good (assuming that happens)? If so, does this impact how many stocks are truly values in this new world? Also, in regards to the U.S. market, I'm personally thinking we're going to come out of this recession but are looking at a few years of low growth if not stagnation. If so, should we be looking for companies in China with good value characteristics over companies in the U.S.? For example, isn't a company with a p/e in China of 8, all things being equal, slightly more attractive than the same company in the U.S. given that the Chinese economy is humming along at 8% year while the U.S. is nowhere close to that? Just things I'm thinking about... Thanks, cw