Category: Money Tips Date: 2006-10-11
Where a repair has studied economics knows that Keynesian economic theory. Keynes believed that the world economy will become more prosperous, the way forward and not backward, upward trend in people's living standards are generally the price index will be higher and higher, all kinds of commodity prices over time is generally the more higher up . From a practical point of view, oil, coal and minerals prices along the way; land and property prices are triumphantly, food, energy and so the value of labor is rising, Keynes's theory has indeed been confirmed by practice of the world economy.
Friends Theory
In all of the stock theory, the basic theory is the theory of long-term friends. The theory is the key time. Time is like and the surface of yeast, often will a very simple investment behavior led to an extraordinary miracle. It was calculated that the U.S. stock market from the years of 1925 and -1,995 in the value of 70 years, even though the stock market has plummeted over the period, and even had collapsed disk, but the result is: 70 years is eight times the rate of inflation, bond value-added rate is 34 times, while the stock price has risen dramatically, up to 1113 times as large-cap stocks, small-cap stocks to 3822 times! Therefore, the stock can actually run from the long-term stability and profitability, buying stocks is not a nerve-racking thing, as long as adherence to the "casual buy, ready to buy, not sell" principle. To "casually buy, at any time to buy" spread the investment risks, through the "Do not sell", relying on time to accumulate wealth, then everyone can be a billionaire.
Long-term rising trend
Investing in stocks takes time and patience, and many of the stock so I do not up, a very important reason is the time yet to come, there is the lack of the main bankers, which have been neglected and forgotten; some are not in line with the current market hot; some prices also there is no real adjustment in place; some consolidation time is also not long enough. Once all aspects of the conditions in place, as long as there is usually a small amount of catalyst will be added together, a number of past bad stocks and unpopular stocks will suddenly become a shining star. The stock market there is a certain long-term rising trend of economic science and reason, therefore, when the stock quilt, if not the top of the spiraling sleeve in the long run, from the long-term, one day will allow you to get out of trouble, so, long-term investment the stock market to be taken calmly quilt should not be a bar all day wringing their hands!
