Why should we set up traffic lights for capital, and how should we invest in the future At the Central Economic Work Conference at the end of last year, it was first proposed that "traffic lights should be set up for capital" to prevent the barbaric growth and expansion of capital.

Why set up traffic lights for capital, and how to invest in the future

At the Central Economic Work Conference at the end of last year, it was proposed for the first time that "traffic lights should be set up for capital" to prevent the barbaric growth and expansion of capital.

1.

Why set a traffic light for capital, there are four core points:

First, prevent the disorderly expansion of capital. Avoid short-term behavior of blindly chasing profits, and guide capital to invest more in the real economy and scientific and technological innovation. Therefore, capital should serve the entity, it should serve the strategy and long-term development of the country.

Second, limit the monopoly of capital. Monopoly to a certain extent destroys the fair competitive environment of the market, monopoly not only makes the market lack of fairness, but also makes small and medium-sized enterprises lose the opportunity to survive and develop, limits the vitality of the market, restricts more employment, and restricts the progress of innovation and productivity.

Third, protect the rights and interests of consumers. This is what we often call "shop bullying", indeed, consumers are vulnerable in the face of monopoly capital, there is no way to effectively protect their own interests, can only be kidnapped by the various rules set by capital and have to be squeezed.

Fourth, prevent financial risks and financial risks. Capital has a leveraged attribute and can be small and broad. Disorderly expansion of capital, lack of norms and guidance, driven by interests, may be unlimited leverage, once beyond the risk tolerance of the enterprise itself, or when the market situation changes greatly, high-leverage enterprises will erupt liquidity crisis, and such enterprises will generally form a "one loss and one prosperity" group or chain through extremely complex related party transactions, a link of risk, then it is possible to infect into a systemic risk.

2.

So how capital should be invested in the future, and where is the direction of investment worth investing.

past. We need to continue to invest in new projects to enjoy the dividends brought by the development of the shortage economy, and with our continuous borrowing and leverage, many assets have begun to bubble, asset prices are getting higher and higher, and cash liquidity is becoming more and more tight, such as the crisis of many real estate.

Right now. Many asset bubbles are bound to burst, the most obvious of which are houses in third- and fourth-tier cities, stocks of speculative listed companies, flashy concepts, illusory entrepreneurial projects, virtual currencies, all kinds of debts that are constantly borrowing new to pay off old debts, a large number of ineffective government parks, various Ponzi schemes, etc., these assets will be beaten back to their original form.

future. Invest in the future strategic emerging industries, especially the top five industry leading enterprises, their existence is what the market needs, is bound to grow, the early investment in the new economy format will bring the earlier growth of all things and the rapid growth of the new economy dividends.