I have been looking at the chinese steel producers which I believe is the benchmark of the Chinese economy. There was a rise last month in the share price and I was staggered.
Some of the largest steel producers in China have pe ratios of 29, this is way overheated, this level of pe ratio exists even after a 30% fall in stock price over 3 months.
I actually think that we have a reverse diagnosis of economic confidence occuring in china. This time instead of world economies having too much confidence in China; China has put too much confidence in world demand which has resulted in overheated stocks.
I think Australian stocks could correct between 15 to 20%, depending on the sector, the down side will be moddest.
correction on the cards
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Last
$62.48 |
Change
0.470(0.76%) |
Mkt cap ! $12.11B | |||
| Open | High | Low | Value | Volume |
| $62.30 | $62.59 | $61.80 | $27.12M | 434.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 830 | $62.47 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $62.52 | 7 | 1 |
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| Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
| ASX (ASX) Chart |