First, bank stocks have always been the bottom goods of major investment institutions, used to balance stock indexes, and are a good tool for stock index futures.
In recent years, although the overall performance of the banking industry has remained stable, it has declined slightly. As a sunset industry, there is little room for development and imagination. In the case that the overall P/E ratio of bank stocks is generally low, there is only investment value, and there is no speculation significance. Looking at the trend of banking stocks in the past six years, the current security boundary of banking stocks is high and it is worth investing. Friends who want to invest in banking stocks, you should think carefully. According to your own situation, whether to choose joint-stock commercial banks with active stocks or six state-owned banks with stable trends, the commercial banks with active stocks have low dividends, mainly buying low and selling high to earn the difference. The six major state-owned banks do not need to set a daily limit, but hold them for a long time and rely on dividends.
Second, to tell you a rule, if you find that bank stocks can more than double, it is basically the last stage of the market index madness.
The financial industry is the sector with the largest market value and the largest index weight. The volatility of bank stocks is very low, so the stock market remains above 3000 points all the year round. The low P/E ratio of large state-owned banks is due to their low growth, many customers, high repayment ability and high risk of small and medium-sized enterprises, and they are unwilling to serve them.
Some well-developed local banks, such as those in Jiangsu and Zhejiang, have higher valuations than state-owned banks. Local banks serve small and medium-sized enterprises and avoid competition with state-owned banks, but their interest rates are also higher than those of state-owned banks. Because SMEs can't get loans from state-owned banks, they can only choose local banks, so local banks have higher growth than state-owned banks, but they are also more risky.
Large state-owned banks are buying for dividends and new ones, with low returns and low risks. A well-developed local bank is a growth stock, which may become a white horse stock in the future, but the risk will become greater, depending on the individual's affordability.