Part 3 - Ten-thousand fold profit in six years- the legend of Taiwan stock market

If you look at the history, every country sought for the opportunity to be hegemony on the global stage. This means there will always be chances to increase your wealth ten-thousand folds. In the past, the lack of technology and transportation slowed down the international financial flows. It's totally different today, as we can see the best example was the bankruptcy of Lehman Brothers. We saw the news spread wildly in just few hours, and led to trillions of US dollars shifting. Like I said, this kind of similar story will keep be happened again and again in the future. The question is: Are you ready? 

In my following blog postings, I will help investors how to achieve the goal of "ten-thousand folds profit within six years". 

1. How to look at the big picture, and think correctly about stock investing in the long-term. 

2. How to pinpoint the upward and downward movements, and the changes in the "Globalization Trend" 

3. How to locate the particular investment targets and related investment strategies in these changes.

I called those events and their whole processes, which caused global financial shifting and market fluctuation in Taiwan’s Stock Exchange, "Globalization Trend". The movement of the Globalization Trend is where we will see stock markets sell short in the long term. Whenever those events happened, the influences were substantial, at least hundred billions of US dollars shifted. Every major market fluctuation that had happened in Taiwan’s Stock Market was caused by the movements of Globalization Trend. If you are unable to grasp the movements of Globalization Trend, you will not be able to predict the stock movements in the long-term. Is this not the reason why you invest in the stock markets? In fact, these saltatory movements of the Globalization Trend showed tracks of human history. They showed the processes of how hegemony was achieved thru technology, politics and military. 

Below are the important to take note: 

1. Discover the Globalization Trend thru the processes of hegemony. 

2. What are the major events will substantially global financial market in the Globalization Trend?

3. What is the " trigger" in the financial market in the Globalization Trend? 

4. What are the current events? Which stock is benefited the most thru the events? 

5. How to accumulate your wealth “ten-thousand folds and more in six years”. 

6. Most importantly, how to pinpoint a profitable stock after stock and then repeat the process, one on one as the set pattern.

Part 2 - Ten-thousand fold profit in six years- the legend of Taiwan stock market

Here is a true example that had happened in the recent years...

I am going to give you a set of number and explain what the reality behind them. It does not require much effort to dig out the truth if you do not believe me.

50 X 12 X 6 X 8.8 X 72 X 8 X 3= 54,743,034 times

The number "50" represents the number of folds of the between the lowest and the highest stock prices of stock ( 2014 CHUNG HUNG) since December, 2001. The rest of the numbers represent the continually growing prices of stocks or investment targets in different generation. The symbol "X" represents two things:

1. It represents the reason how the growth of a previous stock drives the next stock.

2. It represents the profit you made from selling a stock in order to purchase the next stock. And so on.

The sum represents the total wealth that one is able to accumulate within 8 years after the "September 11 attacks". That’s right! It is not only multiplied by 10,000 times, but by 50,000,000 times! It is almost like watching a treasure hunting film. Although the treasure was found, no one was able to seize it to his own, due to its ginormous amount. Therefore, my previous estimate of the profit that you could have earned was 10,000 times, which is only 1/5000 of 50,000,000. Wasn’t I been conservative ? (I will further explain what the rest of the numbers represent in my next blog posting.)

The seven numbers (50, 12, 6, 8.8, 72, 8, and 3) represent a group of investment target and how many times of each stock multiplied between December, 2001 to the first-quarter of 2009. More importantly, we not only see the correlation between these different investment targets (2014 CHUNG HUNG, 2545 HUANG HSIANG, 2006Tung Ho Steel, 5483 SAS, 2601 FSC, 1708 SESODA and TXFC5), but also the cause for the growth. The cause was of one single event. So, if we can figure out what the primary cause is, we can predict the exact timing of a surging stork market. This is what I was talking about in my previous blog posting, the continued correlation between the rises of the stocks. Here is a question for you. If we could not graspe what connected them together, what good are these numbers to us?

The event of the September 11 attacks was the key turning point which connected these numbers together.

Even though the event of the September 11 attacks had passed, there were also many other major global events  (the World War II, the European Recovery Program, the Arab-Israeli conflict, the Plaza Accord, the burst of WINTEL, the September 11 attacks, etc.) that happened over the past several decades. Therefore, the most important issue here is the story of 5,000,000 times wealth multiplication keeps happening today. As long as you know how to find the key to unlock the door that stores these hidden wealth.

It is not hard to find the treasures; there were people who found them. Such as Yung-ching Wang (during the Arab-Israeli conflict), Wan-lin Tsai (during the Plaza Accord), and Terry Gou(during the burst of WINTEL). They are the best examples in the history. Samuel Yin is another present example. If they can find the treasures, so can you. For the story is same in past and now, and will also be the same in the future.

To be continued... 

Part 1 - Ten-thousand fold profit in six years- the legend of Taiwan stock marke

Only when one understands the “continuity” and the "stability" of stock investing, will he be able to profit from it ten-thousand fold and more in six years.

This is a story about the legend of Taiwan, a small country with a population of only twenty-three million people. This country has manufactured and assembled the world's most well known Apple iPhone. It is also a leading manufacturer of the most important personal computers and laptops globally. It has won the most manufacturing orders from many tops sportswear brands such as, NIKE, ADIDAS and UA. The legend of its stock market witnessed twice of how people profit more than ten –thousand fold over the past twenty years. The legend still goes on, except with a different background and story line. 

"If a person could not grasp the historical facts, or does not have a sense of history or historical experience of his time, he would not be able to understand the economic phenomena of any age," said Joseph Alois Schumpeter, one of the most influential economic gurus in the 20th century. At the age of 20, Schumpeter wrote a world famous book and became a professor at Harvard University. Unfortunately, his achievements did not help him in gaining favor in the mainstream economics in that era. It was not until hundred years later that his well-known quote and the theory of "creative destruction" were proved to be true by the development of global economic growth. Schumpeter stepped on the world stage, and became the mainstream after 1990. "The old has gone, the new has come.” The phrase obviously used to describe the development of global stock markets and the stock market in Taiwan in the recent decades. On the other hand, it means the new drives out the old. A new product would not be developed for no reason, nor would an old product be disappeared without any reason. There is a correlation between the two. The best examples are the gradual decline of the textile stocks in the early 1970s, followed by the financial stocks; the financial stock was declined slowly in the mid-1980s while the electronic stocks entered the stage and played a major role; and so on in the 1990s...The stock shifting may appear to be uncorrelated; however, it is not so. Only when one understands the correlation between stock movement and its performance, will he be able to master the continuity and inevitability of investing in the stock markets.In other words, one can say that a stock is merely a sign which reflects the trend movement in its time. The key to stock investing is to understand the trend movement behind the stock shifting, and its continuing correlation. It is like father to son, son to grandson. 

To understand the stock correlation is to hold the key to stock investing, only so will one be able to enjoy the profit growth stably and explosively. In doing so, one will find wealth is in the air. 

To be continued...