Fortune MGMT

The role of history in investing

In the process of investment, we will encounter a variety of difficulties, such as this new coronavirus epidemic, it will make many people begin to doubt whether the world economy is going to collapse, the future will be good? And the international crude oil market also appeared a substantial shock, the price fell to a new low in the most years, all the information tells us that the future economic pressure, the stock market trends also confirmed this, the U.S. stocks fell wildly, a month's time fell four years of gains, not to mention Europe, basically fell back to the level of 2013, then the face of such a difficult situation, we should how to Judgment, how to make decisions.

At this time, in fact, we need to refer to history, look at 400 years of securities history, there has not been a similar thing, after the development of the economy, what can make the global economy from then on into a prolonged downturn, a few years or even a dozen years can not be restored to vitality? Looking back at the history of securities we know that the U.S. stock market experienced a long downturn in 1929-1933, with a large drop and a long time to top the history of stocks, but a few years later, the market came out of the downturn again, and after a long time, looking back today, in fact, the continued consolidation of those years had little impact on the future development of the stock market, however, the historical conditions at that time were obviously much worse than now, and now The global collaboration is getting more and more, fiscal policy and monetary policy for the stock market intervention is getting earlier and stronger, obviously the current occurrence of the Great Depression similar to 1929 is almost impossible, so there is no need to worry about the stock market from now on all is lost, although there may be difficulties in the short term, but the long term is still to the good, if there is no this basic judgment, then now is no matter how there is not enough confidence to hold the stock.

There are some issues, if only look at the present seems difficult to find a conclusion, but if you look back at its history, from its birth, the development of the course to judge, it seems much easier, such as the recent very intense dispute between Chinese and Western medicine, if only based on the present, it seems that no one can convince anyone, each have their own reasoning, but if you look back at the history of the development of medicine, it seems that you understand a lot, the discovery of multi-bacteria, the birth of antibiotics, to the present. The discovery of multi-bacteria, the birth of antibiotics, to the current gene sequencing and stem cell therapy, it seems that this dispute between Chinese and Western medicine itself is non-existent, is a clear-cut thing. Then there is the understanding of stocks, what is a stock? Many investors have been in the stock market, but it seems that they have never seriously thought about what is a stock, nor have they carefully understood the history of stocks, but only know to trade stocks, but have never seriously thought about what kind of thing the subject of the transaction is, what is a stock, and what does it represent? In fact, thinking through these fundamental questions can be quite helpful for us to improve our investment.

If there are some problems that can not go to the decision, seems rather vague, then go to the history of its birth, to see how it has performed in history, this may be a good, can solve the problem path.

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