Stock Market Declassified: Why The Stock Market Can Be Good If The Economy Is Not Good?

An interesting phenomenon in 2014 is that the economy has slipped, but the stock market has risen 53%, reaching a 5 year high. Many people do not understand that in the past, China's economy is the best in the world. However, the stock market is the world's largest and the economy is declining today. Why did the stock market create a new high of 5 years?

I also think it is a trick to predict the specific position of the stock price. If there is such a man of God, he should be richer than Bibil Gates. He should be busy with his girlfriend at the beach in Hawaii. But that does not mean that the stock market can not be predicted at all. I don't know how high the stock market will be this year, but I know that the stock market will be good this year. I am sure that this year's highs must be higher than last year, and the lows will not be lower than last year's. As I wrote in July, "the spring of the stock market is coming quietly", I can testify that my 80% annual yield can also be testified.

Generally speaking, the economy is good because dividends are high in return. equity market It will be fine. But this does not mean that the economy is not good and the stock market must be bad. In fact, from the experience of other countries, the stock market has just hit a new high after the end of the high growth.

The stock market is not a barometer of the economy, but a barometer of capital. The economic situation is good, this place makes money, the place also makes money, the house doubling up, the fool will buy stocks. Notice that the high yield of the housing market is the high opportunity cost of stock speculation.

Now that housing prices are down, money will return to the stock market. If the economy goes down, the government will rescue the market. It will be an inevitable option to send money. The issuance of money will also push up the stock price.

Stocks are assets and asset prices will change in advance. Prices will fall or not, and share prices will fall first. Housing prices are beginning to fall, and will the stock price fall? Similarly, the economy will drop and the share price will fall first. The economy is beginning to fall, and will the stock price fall?

It is expected that the stock price will not drop, and the fool will not buy the stock. People will buy stocks. Can the stock price go up? Can the stock market be bad?

It is not the economic downturn that does not affect stock prices, but this year's economic downturn is expected by the market. Last year's share price fell for this year. Economics Downward reaction. You can't expect the market to repeat two reactions to the same incident.

To be honest, I was in the middle of October. But I soon came to the conclusion that such a big turnover must be a big capital coming in. Big fish need big pond to feed. Big money can only be saved. Large cap stocks It can be maintained. 10 billion, you can not buy one hundred small cap stocks, so the management cost is too high. You can't run away with small stocks. When you run, you are going to run down, and how can you get away with it? And when big capital gets in, you can't run up 20%, so I'm bold to come in and follow up.

What will happen to the stock market in the future? The housing market will return to the stock market. The economic downturn and loose money will continue, so I am cautiously optimistic. But the registration system will be implemented soon, small cap stocks will no longer be scarce, revaluation, and funds will return to the blue chip market. So it should be the world of blue chips. Try not to touch small cap stocks. This is the third time I have spoken.