Page 14 - The 40 Ch. Book by James Hong or 洪祥智

one, in the questionnaire survey of unemployment rate by

government to the people/citizens, the unemployment rate is
naturally a fake, false number.

4.3 Stock
Stocks do not reflect the economy, for many reasons, one of

which is that the stock index is represented by only a few
companies, not all.

Everyone said that stocks reflect the economy, the stock market

rose, representing a good economy, and the stock market fell,
representing a poor economy. A company with a rising or falling
stock may make money or lose money on behalf of the

company. Stocks reflect the company's profitability, not the
economy. 1. A good economy requires a lot of capital flow, and

corporate profits may increase profits by reducing capital flows,
reducing employee salaries, and reducing competitors. 2. The

stock market optimism has nothing to do with economic growth!

Good economic representative 1. Increase in the amount and
flow of funds 2. In the case of rising prices, there are more
people with money. However, the company's profitability, and

the amount of money flow has nothing to do with the number,
and has nothing to do with the rich. Therefore, stocks have

nothing to do with the company's profitability and the economy.

Most believe that stocks rose, representing an increase in the

company's funds. In fact, stocks are related to the company's
funds, only when the company buys and sells stocks to

shareholders. Under normal circumstances, stocks operate on the
hands of different investors, and transactions exist between

different investors, so money is generally flowing between
investors. Therefore, under normal circumstances, stocks rise

and fall only affect investors, but have nothing to do with the
company's funds.