Jake's View | Insights of minister for financial services truly - or not - boggle the mind
Why should the blind not lead the lame? Why not have a career academic who has never sat at a dealing desk pronounce on the coming trend of share prices? Herewith some of the thoughts of the Secretary for Financial Services, Chan Ka-keung.
Hong Kong's minister for financial services and the treasury sees no threat of reckless speculation gripping the local bourse like the mainland stock market despite the volatility seen here in the past two months.
Why should the blind not lead the lame? Why not have a career academic who has never sat at a dealing desk pronounce on the coming trend of share prices? Herewith some of the thoughts of the Secretary for Financial Services, Chan Ka-keung:
Thank you, sir, for your example of investment analysis made easy - the higher the PE ratio the higher the risk and the lower the PE ratio the lower the risk. I wish I had known this during my previous career as an investment analyst.
I had mistakenly come to the view, you see, that to the extent that there is any relationship between the two, and I never saw much, a higher PE ratio tends to indicate greater confidence in the stock and less prospect of risk. Why didn't I ask Professor Chan?