A Study On Stock Investment Strategy Based On BIE Model

After more than20years of development, China’s stock market has achieved the great achievement. As of2012March, A shares account number have achieved to160million, total market value reached23trillion RMB, listed companies reached2450. China’s stock market expansion speed is a leading global. However, after a bloody baptism of stock market, Chinese investors have lost a lot. In December13,2011, SSE Composite Index staged a historic act,and down to the minimum to2245, and in June14,2001ten years ago, SSE Composite Index refers to the highest point of2245points. A cycle of ten years, SSE Composite Index " miracle" back to the start. According to the SINA surveyed in December30,2011,40%of the investors in2011the stock investment losses in50%. There are many investment loss causes on ordinary investors, including the financing positioning of capital market, the stock issuing system, corporate governance structure of listed companies, capital market insider trading problems. However, these problems depend on the privileged class interests, system change, and these factors is not controlled by our ordinary people. For us, the only thing to do is to enhance their understanding, to grasp the essence of things, find out the law of development, try to avoid further losses in the future capital market. Based on this goal and combined with their practical experience at home and abroad.I proposes the BIE model of the stock investment strategy.The core ideas fo the BIE model is to follow economic pattern, seize the economic cycle, the industry cycle and life cycle of the three listed companies in the rising phase, homeopathy and for.First of all, the economic cycle, there are four stages of development, respectively, the recovery period, outspread period, stagnation and recession. According to the investment clock theory, stock investment recovery period is the best period. So, we need to know how to identify the beginning and end of recovery period, need to explicitly identification index and its characteristics;Secondly, for the industry life cycle, there are also pioneering period,long-term period, autumn and winter of four stages. Different industries have different development stages. And for ordinary investors, pioneering period and long-term industry is our preferred investment. Similarly, we need a growth industry judgment index;Finally, the enterprise life cycle (it is also our investments:listed company), is usually divided into development period, long-term period, autumn period and winter period. Similarly, our goal investment object must be in development period or long-term, and will appear on the company analysis from four aspects, which is the competitive position, development space, profitability and return on investment, each abstract two key indicators for listed companies to identified listed companies..