Ten Lies To Break Through The Stock Market Investment

Ask the broker to see when he warned the customer that it was not suitable at that time.

Stock market investment lies two, "the stock market makes an average annual profit of about 10%".

This is based on the past history, and about three percentage points of these 10% are only from the past.

Stock market investment lies three, "our economists predict..."

Stop it.

Ask broker if economists have predicted the latest recession.

Buffett once said that fortune teller's performance was pretty good before predicting his family.

Stock market investment lies four, "investing in the stock market allows you to participate in economic growth".

Let's say this to the Japanese.

Since 1989, Japan's economy has increased by more than 1/4, but the stock market has fallen by more than 3/4.

Stock market investment lies five, "if you want to have high returns, you have to take high risks".

Buffett must have been surprised to hear that. He would rather invest in those boring companies and boring businesses.

Stock market investment lies six, "market valuation is really cheap."

The widely quoted price earnings ratio may be misleading, because the volatility of profits is too great.

Stock market investment lies seven, "the time of market change can not be predicted".

Such an old saying made it impossible for the client to withdraw a penny from the market.

Stock market investment lies eight, "we recommend decentralized fund portfolio".

This is a good suggestion if we decentralize cash, bonds, stocks, commodities and precious metals.

But in too many brokers, the so-called decentralization is to invest in different names and different styles of funds. These are just marketing gimmicks.

Stock market investment lies nine, "this is a market for stock selection."

Even if the market is really a stock market, how can you believe that your broker is the right stock option?

Stock market investment lies ten, "the stock market has outperformed other markets in the long run".

What is long-term? If you can persist for 10 years or longer, then what is the use? As economist Keynes once said, in the long run, we will all die.