Application Of BCG Matrix In The Securities Investment Strategy Of Individual Investors

Since 1990, the Shanghai Stock Exchange and the Shenzhen Stock Exchange have been established, relying on the rapid development of China’s economy, especially from the golden years of China’s economic development started in 1998, never to the end of 2014 China’s securities market has 2613 listed the company’s size. However, due to China’s own development of capital market is not perfect, legal and institutional building domestic securities market is still very relevant way, the development of the stock market is very sensitive to national economic policies. Further regulatory agencies on China’s stock how future market development and the lack of a strategic blueprint for perfect yet, but caused no excessive administrative intervention continuous policy is not uniform, flip-flop, which also caused the stock market plunge soaring short-term, severely affected the investment of investors confidence.Rapid economic development and financial deepening reform, so that the majority of individual investors demand for finance and investment growing, the stock market booming provide broad investment channels for investors. According to China Securities Depository and Clearing 2014 Statistical Yearbook show that, as the end of 2014, the city’s A, B shares account number 184 011 700 There are many, of which A-share account number 181 456 200, an increase of 8,822,400 compared to the previous year, the effective household 142 146 900. However, the instability and volatility of the stock market environment for development, so that the risk of stock investment is very high. Especially our individual investors, due to the lack of a stable stock market culture, their own lack of investment experience and fundamental analysis on the stock market, technical analysis capabilities lacking. Information asymmetry and scale advantages compared to institutional investors, individual investors, the investment risk is even more obvious.Combined with the frequent fluctuation of the stock market and the amplitude big, big bull market, bear market phenomenon occurred many times in the environment, disadvantaged individual investors the urgent need for a professional, reliable, simple application of portfolio theory in bull and bear markets, market equilibrium City at how to deal with decision-making. Therefore, China’s stock market for the Bull and Bear and individual investors the characteristics of research for individual investors in a bull market, bear market, stock investment decision model city under different market balance on the very practical significance.This study focuses on the analysis of the bull market, bear market and balanced study of the city under individual investors, the model is China’s A shares (without considering the GEM stocks, because the GEM was established a short time, it is desirable to insufficient data, plus mechanism of protection for individual investors, investment GEM stocks not universal). Articles are divided as five parts expanded.The first part as an introduction. The main significance of the article describes the background and research, review research home and abroad, as well as at the shortcomings of this study and innovation among. Promote social development and the financial knowledge, the individual investor acceptance and demand for finance and investment concepts more and more strongly affect the development of the capital market. But his investment income of individual investors, the reality is always cruel, depending on the individual investor’s speculation, lack of theory and other causes of irrational investment. Taking the perspective of individual investors, combined with the bull, bear and balance of different market characteristics of our city, to explore the model portfolio of individual investors can be easy to understand and grasp.The second part Portfolio Review matrix model theory and Boston. The first part of this paper analyzes the current commonly used Markowitz M-V model, capital asset pricing (CAPM) model, GARCH model and Copula function model, we introduced their model assumptions and their application, and specific make a specific evaluation model. The second part focuses on the basic concepts of the Boston matrix analysis principles and its reference in the investment securities. Boston matrix analysis results use the securities industry classification is very practical significance.The third part of the contents of individual investors investment strategies for the design model. This chapter is the use of the Boston matrix analysis method, when the securities investment portfolio selection, the first use industry GDP as an indicator of high growth rates and the selection of stable growth industry bull and bear markets and the balance under the city, and then the selected industries listed companies use to measure the growth rate of revenue, selecting the target listed company building a portfolio.Title IV of the empirical analysis. This chapter start 2006--2014 years 9 years according to the annual standard certificate chart to determine the year of the bull market, bear market and balanced the city under. And then on the specific market conduct Boston matrix used in the stock market respectively. This part is the focus of this study place, through bull and bear markets and balance the city were discussed building a portfolio under different market, the final results validate the Boston investment portfolio strategy.The fifth part of the contents of the article with conclusions and recommendations related investment. Comprehensive empirical results will draw conclusions, and then on the characteristics of investors, put forward the corresponding investment advice.