Tuesday, January 31, 2006

The Death of Equities



As it appeared in Business Week in August 1979:"The Death of Equities". At that time, people would rather invest their money in money markets, fast-food franchises or rare stamps. Stocks, apparently, were history.

Will this becomes reality in the future? Very likely, when an inflation rate becomes higher and higher, prices of commodities such as oil, gold, copper, rubber, sugar reaching their peak again and again, Great Depression which we all thought is already a memoir of history re-appear, employees suffering their pay cut in order to maintain their job, everywhere we can see there are abundance of unemployed people seeking help. And that's the time of "collecting" our bargain hunting of equities which when we buy it, people surrounding you will laugh at you and doubt whether you are stupid or insane.

"The future is never clear. Uncertainty actually is the friend of the buyer of long-term values."

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