Rational or Irrantional

60000 person per day opened stock trading account last week. Even for those people who never buy or sell a single stock are rush to buy funds and stocks. People are discussing whether to sell their house so that they get the money to pour into the stock market. On the one hand, average P/E for the listed companies are higher than 30, one the other hand, stock prices are still climbing up. Is it rational? Or is it Irrantional?

This is mamia. This is China's way of investment, oh, perhaps this is China way of doing many things. If one thing is hot today, there's will be a thousand tomorrow. Previous years, every one was frenzy about the real estate, both the welthy and the poor. Now, the ball is in stock market. All money seems to be diverted to stock market. As we look at all these as a spectator, we could not believe all this would last even a single day. But it goes on, and on, and on so that specatators can not hold themselves and start to act. One day, it will crash. Hopefully China will be lucky enough, like its economy, to have a soft landing before the bubble busts.

Okay. How about myself? I never buy a stock but I may go ahead and buy some. Before doing so, I'm still studying the all the investment strategy and report from UBS, Goldman and CICC. It's recommended to get my feet wet in the pond but I have to make sure that I will not be drowned.