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Despite the rise in the stock market, when you ask your friend who trades stocks, no one has recovered the invested capital. Many investors who entered the market on January 24 at 2900 points are still in a loss until now. But self-proclaimed bloggers are making profits. They haven't seen such crazy movements over the years. In every video they shoot, their faces look bright, as if they have become billionaires. Everyone speaks in the same way, encouraging everyone to buy stocks. These people include professionals and non-professionals, people doing technical analysis, and people doing industry analysis. Everyone talks about the amount of increase in their daily positions and the quantity they bought. The screen is filled with greed and bulls. The economic fundamentals have not improved or been clearly resolved, but bloggers have suddenly turned from general pessimism to general greed. Although we all know that according to economic and financial theories and historical events, we have never witnessed a phenomenon in which the stock market is lifted through popular trading in the face of the deterioration of the real economy to promote economic recovery. This impossible theory and practice cause confusion and concern, but there is no way to resist the enthusiasm of investors. And even the stock market has been openly stated to become the new pillar of the economic industry. From the real estate market to the stock market. This is a very strange logic, how can the stock market become a major industry? Real estate is the economic axis because it promotes the development of hundreds of related industries and enhances employment. In addition, the real estate industry can generate
Taxes and tax revenues form a large part of total financial revenues. Therefore, real estate can become a supportive industry. So what is the exact role of the financial market? Can it increase revenues? Can it increase taxes? Or can it stimulate other related industrial sectors. The logic of the financial market is to increase income by buying at a low price and selling at a high price, and the increase can only be achieved when there is an exchange between buyers and sellers. If there is a lot of buying in the market without selling, or a lot of selling without buying, how can stock prices rise? This means that there must always be people buying at higher levels to support the market and ensure its liquidity and
The stock price has risen. Therefore, the rise in stock price needs a positive push, whether it is politically or economically positive. We can discuss this logic using a specific theory or practical history, but many people won't do that. I think the reason for the current stock market congestion is mainly due to the outcry of investors who are suffering losses, they are fighting. In fact, there are many investors who are suffering losses and are desperately screaming and waiting for risk-tolerant individuals to appear. When people ignore all circumstances, are engulfed by greed, and blind themselves to all basic information, they will ignore information. There will be a contradiction in advanced emotions, and they will choose not to look at what does not align with their desires. Like what I'm saying now. They will be crazy and expect themselves to be able to get rich. Then they go searching for many theories to support their ability to get rich. And this may also be a cause of poverty. Making money has its own system, and there is a logic to the inflow and outflow of money. People who don't understand this point always oscillate between greed and fear. They can only be harvested. God will not allow someone to get wealth beyond their own imagination.