Inflation is the real enemy of the stock market
What appeals me most to me about why the economy is cyclical ("Forex, Boom Cycles and Market Volatility"), an excerpt from investor digest, is that there are many empirical data in it, such as the rise and fall of asset prices in the UNITED Kingdom from the Second World War to 2004, which shows that the performance of stocks is extremely dependent on inflation, which means that inflation is the real enemy of the stock market.
In the case of high inflation, the performance of high-growth and low-growth stocks was 4.4% and 4.1% respectively; In the case of low inflation, the performance of high-growth and low-growth stocks was 13.4% and 11.1%, respectively. It's clear that the performance of stocks has little to do with the economy's high growth versus low growth.
The performance of tangible assets (art, real estate and raw materials) is mainly determined by economic growth, with high inflation and low inflation real estate performing at 8.1% and 11.0%, respectively, art at 9.2% and 7.5%, and raw materials at 6.1% and 15.1%. In the case of low growth, high inflation and low inflation of real estate performance is -4.2% and 4.7%, art is 0.3% and 0.9%, raw materials are 2.8% and 3.2%. Compared with stocks, the impact of inflation on tangible assets is indeed small.
I have already introduced "How the Scots Invented the World" ("The Spirit of the Earth") in the first two volumes of the "Investor Digest", and here is an excerpt from the reading notes of Hu Hai, the main writer of the magazine, to confirm each other:
A very good history book, mainly recounting the contributions of the Scots during the 18th and 19th centuries. While the title may feel a bit sensational, after reading the book, you have to admit that the Scots of the 18th and 19th centuries did make a significant contribution to the establishment of the modern world.
In fact, even with adam smith and David Hume alone, saying that the Scots laid the ideological foundations of modern capitalist society, I believe that few people can refute it (the ego feels that its thinking is greatly influenced by Smith and Hume). In addition to this, the Scots who are familiar with us include Watt, Bell, and Carnegie.
Well written, involving a wide range of aspects, politics, philosophy, economy, military, culture and other aspects are involved, both rational analysis, but also full of emotional description, let people sometimes think deeply, sometimes moved, sometimes smile, sometimes sad, very good-looking, a lot of content is very inspiring.
Scotland officially joined the Commonwealth in the early 18th century, when the promoters were mainly merchants who hoped to do business in its colonies after joining the Commonwealth, and the Scottish people at that time were very opposed (the two sides were very antagonistic). But in the decades after the actual union, Scotland's economy has grown considerably.
Scots is another language that is different from English, and at that time, from the point of view of thought, the Scots were very british, and their enthusiasm for learning English was very similar to that of learning New Oriental and crazy English now. An Irishman (whose Irish is also different from English) was popular in teaching English in Scotland and made a lot of money (Adam Smith's The Wealth of Nations was considered a classic of English, but for him, English was actually a foreign language, and his spoken English always had an accent). But soon Scotland surpassed England in terms of ideological influence and became the dominant force in the Commonwealth.
People's self-esteem and national feelings are easily abused. In 1745, the deposed Prince Charles, in order to regain the throne, encouraged the tribal chiefs of the Scottish Highlands to rebel with him, and these chiefs knew that the odds were very small and were reluctant, but because of the sense of honor (they had originally submitted to the Charles Dynasty) they still followed him, fought bravely, and suffered great defeats and heavy casualties. And Prince Charles is only for his own selfish interests.
Calvinism arose out of rebellion against the church's monopoly on doctrine, and therefore had a strong sense of anti-secular authority, laying the ideological foundation for Western democracy. But its own doctrine is extremely strict, and no entertainment such as theater performances is allowed, and any words and deeds that are disrespectful to God may be punished or even executed.
In the 18th century, Scotland was probably one of the poorest regions in Europe, but it had the highest literacy rate. Among the immigrants to the United States, the Scots were the most popular because they were both literate and hard-working. Because the Calvinists believed that all people should be able to read the Bible, a series of schools were set up in the countryside. We all know that the "enclosure movement" is "sheep eating people", but in fact it is an inevitable economic and environmental consequence – if these lands are grown with food, it is not economically feasible. Tenants could not earn enough income to pay rent by growing food, while landlords could not obtain enough rent to keep their territories running. At that time, the economic situation of these landlords was very poor, and many of them were heavily indebted and had to change to sheep.
We all know that the Opium War was the beginning of imperialist aggression against China, but why didn't any country except China seem to have a serious opium problem at that time (including India, which grew opium in large quantities)? Carnegie embodied the typical Scottish spirit: hard-working, shrewd, and compassionate (he is said to regret the bloody death of his uncontrolled conflict with striking workers, and the main reason why he later sold his steel empire). "It is shameful to die as a rich man," he said.
This picture originated from the Internet and was invaded and deleted