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...
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