Category: Money tips Release Date: 2006-12-19
When the cool-headed investors are able to accept an uncertain future, but they were about market sentiment, the human nature of greed and fear will be out of mischief, so that investors have become very bold predictions for the future. For example, in the stock market bubble, investors seem to completely forget about the future uncertain, they believe the stock market will go up, so as to continuously push stock prices higher until the burst; but in times of crisis comes, they change, I believe that the stock market may be tomorrow it will be completely broken down. In fact at this time for optimism has become a dominant factor in hand, the market ups and downs because sometimes the only by investors from suspicion to identify the psychological changes in shape. Think of the market to solve the split share structure response to this matter, it seems to solve the split share structure will soon make a big bull market in this market, we highly anticipated. Change the stock market as investors own almost exclusively hypothetical that a bright future. But in fact it is what kind of future do, investors are not convinced that such programs, time, process and so on.
Uncertainty is the enemy of investment, but also investment opportunities lie. If there is no uncertainty in the stock market may be less like a constant interest rates, inflation bond market remains unchanged, any person who is the same rate of return on investment. Therefore, only where there is uncertainty there is only opportunity. A stock market as the most recent year of the Erie shares, when the company's chairman was arrested after the news, investors feel a great uncertainty, share prices fell sharply. But from another point of view, this is actually the Erie shares a year ago, an independent director on the recall, which began the end of the uncertainty. Therefore, the company's stock price began to rise next three months, or up to 50%. The uncertainty on the Erie shares may not be the end of the story, if you remember the heyday of the Hongta cigarettes, you can expect when the Hongta chairman was arrested the following year company can barely maintain, to three years, the company began operating the same as the free-falling down.
With experience, such as technical charts, or manipulation of stock prices to respond to uncertainty in the investment, even in China, almost failed. Investment philosophy and investment in technology development is an investment tool to deal with uncertainty. Investors face uncertainty in the market is not powerless, in fact the stock market in this century the rapid development of the contrary, benefited from the certainty of market returns. Sell insurance in Canada has a net worth of the staff became the owner of a lot of money. He has done is to the stock market in a variety of species such as large capitalization stocks, small-cap stocks, bonds and other long-term yield curve drawn on a map, visually the performance of varieties of long-term benefits of these investments. Now almost all of North America, the fund management companies to buy from him the right to use the yield curve. The average income is higher than the long term bond yields are very determined, although experts do not know why the stock market in the long run the risk of not higher than the bond market higher, but the yield was significantly higher than the bond market. Now we know that index funds over the past 20 years, not only because of the size of the expansion that Nobel Prize winner William Sharpe of the efficient market theory, more importantly, investors did receive a lot of benefits.
On the other hand, if investors are not satisfied with the stock market's average return, or from the many initiatives and technology-oriented investment philosophy, where to get help. The world's largest institutional investors 90% of revenue is derived from asset allocation to this the fact that the country shows that proactive investment philosophy and technology is the core of certainty for the largest part of the excess returns. Therefore, a successful investor is always tell you the same experience, only you are familiar with stock investing.
