About to usher in yet another in life insurance category prices skyrocketing, many people see this subject may feel uncomfortable, would think that the author is a REIT, or a sense of social responsibility is not the real estate industry. In fact, for putting forward this point of view, I also feel uncomfortable, I [...]
About to usher in yet another in life insurance category prices skyrocketing, many people see this subject may feel uncomfortable, would think that the author is a REIT, or a sense of social responsibility is not the real estate industry. In fact, for putting forward this point of view, I also feel uncomfortable, I also feel that the current prices are already beyond the normal purchase and sell capacity has been reduced from the most basic necessities of life and become a luxury of spending a small number of people .
Why is the skyrocketing housing prices will usher in another it? The reason is very simple, because our prices are not a large part of the housing needs through the normal upgrade, but created through investment and speculation. Investment and speculation on the flow of funds involved, with a lot of money flows to the industry in general will have the following three characteristics: First, this industry needs capital-intensive, and the large amount of capital flows; 2, the industry can produce huge returns, can produce the virtual value; 3, the industry’s access threshold is not high, professional requirements are not very strict. Well, look at China’s investment market, only the stock market and the housing market in these two industries best meet these requirements, but also capital flows are now the two industries with the most crazy.
So, let’s take a look at the performance of the stock market, the Shanghai from May 1 broke the 4,000 points after surging in no way aware of the danger, while at the same time, the central bank governor Zhou Xiaochuan has been made on the current stock market warning , foreign professional research institutions also made the existence of China’s stock market bubble, the old shareholders have already begun to withdraw or reduce stock holding, in a state of wait and see holding cash at hand; the current stock market really is the climax of a number of milli – No stocks new and inexperienced investors, it was reported that every day thousands of new investors from big accounts into the stock market. These phenomena to say? Shows the true meaning of experienced people have to the existence of the stock market risk, while the inexperienced investors is to stick to catch the last one, in a final gamble.
Turning to the stock market risks, we can first look at the formation of the stock market. The stock market has just referred to as initial offerings is the enterprise in order to attract funds for their own development arising from the form of a fund-raising. Thus, broadly speaking, every one is a shareholder of shareholders, as shareholders, the most secure way to access to business profitable dividends. However, the characteristics of the stock market just after its publication in the market can be part of the independent of the enterprises has become a gambling tool. When an enterprise to a certain percentage of shares listed, this part of the shares is in circulation, it can freely transferable, precisely because of this circulation and random assignment, most people in their value can produce a virtual evaluation of the virtual assessment of the funds once absorbed, then become a real value. Therefore, the stock trading is always alternating between the virtual and the real-changing. The biggest factor affecting this change is the capital, whose large amount of money, who will be able to manipulate the entire stock market direction, that is, a sure win in the stock market, and will always be those funds sufficient enough to control the stock market people, These can only be a foil for the vast majority of small shareholders, and have been rounded up in pairs like. Then the last one will never stick to control the stock market who end up a rod means pay, this is the inevitable fate of the majority of small shareholders.
From the current stock market point of view, the old shareholders have a clear lack of confidence, with an estimated time from the last one does not stick too far away, even if the country in order to stabilize the stock market, even behind the 2008 years later, but ultimately there are still risks, or will make a lot of money out of the stock market re-community as idle funds. As an investment people, the money idle is a tremendous waste. These people will inevitably find a new way to finance real estate investing is undoubtedly one of the best choice, why? Real estate investment return on the stock market although not as great, but the risk is much smaller, after all, holding a physical asset, even if the later can not be traded can also be in the form of asset-backed cash.
With the rise in the stock market further crazy, I believe there will be more of the old investors underweight, compared to the eve of the end of the bull market, must be the beginning of skyrocketing housing prices once again. Or may not think so, at the national control of such a severe real estate investment policy environment, if the house prices in the future re-emergence of the frenzied rise in the situation, it ———- published from www.autoinsurancequotes3.com
