China Growth Stocks

[Traderfan]

I certainly agree with you that the sentiment is very bearish out there. Pretty much everywhere but especially in our sector. What disturbes me is that it seems valuation is not a factor anymore. I ask myself how should one invest if companies with a PE of 3 with strong cash flow and a stable business are getting treated the same as companies with a PE of 12 with negative CF in a risky sector. That's where it gets hard to make any money overall. Who says the stocks with a PE of 3 don't go down to a PE of 1 again?