Chinese Economics Thread
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Exactly. Well said. There's always been a disconnect between the stock market and the ordinary average man! Margrate Thatcher tried to altered that, (she called it "home owning, share owning democracy). But all it did was made a few people fast buck in the process, and it all reverted back into the hands of the big institutions investors.
As when I was in the loop. We always said it is a long term investment. Unfortunately, CEOs with short contracts 3 to 5 years usually, and investors impatient for a quick return made it not so.
Thanks for the reply. But my question was directed at @gadgetcool5 because his fixation, just like Trump on stock price. And the inference he and Trump get that economy is doing well because of stock price.
Also, what you wrote is not the complete picture. For example, paying salaries from stock price increase?? Completely incorrect. All stock price increase goes to a share premium account in the balance sheet.
But I'll stop here. Because I'm fed up with gadgetfool keeps on about stock price. Which is why I address the question to him since he profess to know all about stock market and firms capital struture.
Yes, he knows little but profess to know alot!
A tracker is not available to your ordinary man. You need to buy into a investor that is a "chartist" as opposed to "fundamentalists". A tracker uses passed data and make use of computer software to track stock movements. It assumed there's a relationship between past data and therefore extrapolate to predict the future.
This means, as I tell my students, they are assuming past data (numbers) have memories. Which of course it's absurd.
It is even more assured to think a company's value could increase/decrease without any significant income stream increasing/decreasing.
Ok. I'll stop here as I'm interested in what I friend can tell me about stock market! I don't want to give him any more lead! Lol
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Index trackers are available to everyone. It's not difficult to buy a FTSE100, NASDAQ or DJIA index tracker.
And there's no prediction "chartist" or "fundamentalist" with index trackers, and therefore fees are minimal.
It's the index compilers which add new successful companies based on how big they are and then remove the smallest companies.
Depends on which stock market you look at and what timeframe.
Hence a conservative view of 7%-9% per year.
That is not accurate. You've been fed a neo-liberal lie by the media and the wealthy in the USA.
The studies show low-paid workers spend more of what they earn, whereas higher-paid workers save a higher proportion of income.
So higher pay at the bottom results in MORE economic activity overall, and a higher level of overall employment and well-being in the economy.
This means a more equal society in terms of income and living standards.
The studies (as per the Economist) also show this results in a society with a higher level of overall happiness.
And that everyone (both poor and rich) is healthier as well.
But you'll never see the Wall Street Journal publish this, because it goes against their neo-liberal free-market ideology.
The technique is to buy nasdaq index funds, which keep on going up.
This will force up the price of steel globally. The Chinese are helping the US to fuel the inflation bonfire started by rampart printing of US bills. Trade war 2.0 Chinese counter attack.
This is part of economic warfare. The Chinese are driving out speculative hot money from US QE while opening up the Chinese market slightly. The Chinese stock market is intentionally suppressed so that it is not attractive to all those fake money printed by the Fed.