Chapter 359 Why is it so difficult to make money in recent years?
"Nothing is worth anything..."
"As long as I don't lose money..."
"Hey, even though I haven't made any money in the past few years, at least I live in the village and grow my own vegetables. Vegetables are free, and I only have to pay for eggs and meat..."
"That's right, now you say growing vegetables isn't profitable, but haven't the prices of pork and eggs come down? Pork is ten yuan a pound, and eggs are ten yuan a plate. They're so cheap..."
"It's difficult for everyone now..."
Back home during the summer vacation, a few grandpas and grandmas were chatting under the shade of a tree...
Indeed, in recent years, everyone has had a hard time, especially business has been difficult.
But basic life is still worry-free.
The fundamental reason is deflation, weak external demand, a partial cut in external demand due to the trade war, and a refusal to cut interest rates on the external demand side.
In other words, since last September, the second round of the urine holding competition has begun again...
Deflation is something that many governments, including individuals, hate.
Because "no money"
Everyone, including every government, likes to "make money" and likes inflation, especially controllable inflation.
Because inflation means the increase of wealth.
Although everyone is raising prices, it is equivalent to no one raising prices.
However, this illusory wealth effect means countless opportunities to make money, and it means hope.
People, that's what they are.
As long as there is hope, there will be motivation and enthusiasm, even if it is paper wealth or empty pie,
Often times, attitude is very important.
Back to the market, due to deflation in recent years and the continued slump in CPI, a serious asset panic has occurred.
Many companies have found themselves swimming naked when the tide recedes.
Inflation is gone, CPI is flat, interest rates are low, and we can no longer play our bubble game.
In fact, the profits of many companies will increase significantly during inflationary periods, but on the contrary, they will drop sharply during deflationary periods.
Basically, they are just pigs riding the wave, making money from the bubble.
Once the wind stops, the true nature will be revealed.
The situation is now clear. The second urine holding competition is underway.
Domestic water release is very restrained,
Because we are afraid of going too far and overheating, we must focus on stability. The market performance must also be based on stability. This is the general tone and is necessary in the context of the Sino-US dispute.
All the ideas of wanting to see a huge increase in prices, get rich quickly, or flood the market with money are unrealistic and need to be discarded.
Abroad, party struggles have become increasingly intense.
Some people want to flood the market with money, while others insist on not doing so. This will definitely come to an end in the future, which is why precious metals have been rising in recent days.
No one knows how this farce will end in the future.
However, the Empire has already begun to fleece its allies and vulnerable groups.
Inflation, inflation, this is the most important observation point.
Whether it is real estate, liquor, banks, insurance, etc., which are constantly being debated in the market,
They all need inflation, the bubble amplifier, to increase their performance.
When inflation does not rise, or in other words, when this economic cycle does not bottom out and rebound,
The performance of these sectors is not optimistic.
In fact, including our profits, our work and life, a lot of them are also earning inflation bubbles,
These days, the banking sector is leading the market.
It's not because their fundamentals have improved or their performance has grown,
It's because some funds are attracted by their high dividends.
However, to be realistic, the performance of the banking sector has not improved.
The current surge has already overdrawn several years of performance.
And, in the future, if the US significantly cuts interest rates, for example, by a few percentage points as Trump requested,
That will definitely lead to financial turmoil in the United States, which will in turn affect the domestic market.
By then, it will be another bloody storm, and also a good opportunity to make plans.
Crisis, crisis, there is opportunity in crisis. Without crisis, there is no pit and flexibility, there is no opportunity.
Don't release the eagle until you see the rabbit, just hold the stock and wait.
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