Chapter 686 Underestimating the Potential of the Taipei Stock Market
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January 25, 1990.
Xu Cun returned to Xiangjiang from Japan with Michiko and daughters of Xixie, preparing for the upcoming New Year spanning to the 1990s.
Although there are still a few months before Xu Cun's birthday, after this year, Xu Cun has entered his 30s and has become a real adult.
Ordinarily, for such a significant year, Xu Cun should be more serious even if he does not do special events. But the fact is just the opposite - this year is the most concise year Xu's family has lived in recent years. Not only did Xu Cun not take his family to Musha Island for a New Year holiday like in previous years, but he only stayed in Shi'ao Manor until the end of the year. On the fifth day of the lunar new year, Xu Cun flew to Taipei with all the girls who were fine.
The current Taiwanese economy has achieved an average high growth rate of 9% for 40 consecutive years. In addition to the increase in wealth reserves, private income has also increased significantly-people's salary income has increased rapidly, and bonuses and dividends at the end of the year are even more generous. You can receive one to two months of extra salary; workers in some ordinary industries can generally receive an extra three months of salary at the end of the year; in some monopoly industries, the bonus amount at the end of the year is usually equivalent to seven to eight months of monthly salary; In certain industries, such as the year-end bonus for employees of securities companies, the year-end bonus is as high as 70 months, or even 100 months of monthly salary.
At this stage, countless hot money poured into Taiwan, causing the per capita GDP of Taiwan to break through 10,000 US dollars, causing the real estate to quadruple in a short period of time, the service industry to rise, the sales of cars and houses to peak, and the tourism industry to flourish. Famous brands and high-quality goods have also begun to become big performers in department stores. It can be said that the island is completely flooded with funds. The huge flow of funds is greedily looking for various investment opportunities, and the stock market has become the largest "reservoir". Within a short period of time, the index skyrocketed from more than 1,000 points to more than 12,000 points.
In the process of this surge, it can be said that the asset appreciation of the vast majority of the middle class is very good. The number of people who open accounts has increased from 50,000 to 60,000 to more than 6 million, and stock trading has become a typical exercise for the whole people.
And at this stage, it is true that you can earn money by buying anything, as if everyone is Buffett, so during the whole process of skyrocketing, the life of the middle class is very easy-because the current market opens at nine o'clock, until The market closes at twelve o'clock, so the entire trading time is only half a day. The first thing for those Taiwanese people who have made a fortune in stocks to make a fortune is to find a decent restaurant and have a hearty lunch first, and then arrange various entertainment activities in the afternoon, including singing, dancing, shopping in department stores, etc. .
During the three years of the Taiwan stock market bull market from the end of the August 7th stock market crash to the present, it is not an exaggeration to say that anyone who adopts a random stock selection strategy of "throwing darts" can obtain an average percentage in the Taipei stock market. The monthly rate of return is 8.5, and some people who dare to use leverage can easily become rich or even super rich, or even super rich with tens of billions. To use a popular Hokkien dialect to describe it is—— The money floods the eyes of the Taiwan bend.
However--
This unprecedented bubble-like surge has long turned the Taipei stock market into a "casino" that does not generate real value. The stock market should have the function of rationally allocating resources. , rather than investing.
Some companies that should have been delisted and delisted in other markets will immediately become market hotspots after being picked up by big players in the current Taipei stock market.
Some companies often have no real assets, no income, and even no employees, but as long as they are small-cap and the chips are easy to control, the stock price will be fired into the sky—for example, a stock called "Xinqi Woolen", which has no business. There is no improvement, but the stock price has experienced 22 consecutive unlimited daily limit. There is also a stock called "Yihang". Yihang is a listed company with only one broken ship. The initial stock price was only 1.67 cents.
It is just the opposite of the situation where junk stocks are speculating in the sky-the stocks of a few large companies in Taiwan with excellent fundamentals and leading international competitiveness are not favored by the market.
The skyrocketing pattern of blue-chip stocks lagging behind junk stocks has pushed the Taipei stock market to the position of the world's least investment value stock market.
Now, the average price-earnings ratio of Taiwan stocks has reached 100 times, while the price-earnings ratio of other markets in the world during the same period is below 20 times.
Although Taiwan's regulatory authorities have also begun to warn of the bubble crisis, investors who have already gambled red-eyed are still overall optimistic.
...
Yangming Manor.
In Xu Cun's study.
He Chaoqiong said nervously: "Brother Cun, we have less than 3 billion US dollars left from our 10 billion US dollars. Those Taiwanese banks that provide us with leverage let us cover our positions, otherwise we will forcefully cut our flesh."
He Chaoqiong, who had made countless money with Xu Cun in the stock market, naturally believed in Xu Cun's judgment.
Moreover, it was not only Xu Cun who judged that the Taiwan stock market would plummet, but even He Chaoqiong could see that the already deformed Taiwan stock market was bound to have a plummet.
But the question is, when is this big drop?
Since they entered the Taipei stock market three months ago, they have lost 70% of their losses so far, and this is thanks to their failure to obtain a large leverage in Taiwan, otherwise they would have been out of the game long ago.
It is not difficult to see from this that even if you can see the general trend of the stock market clearly, you may not necessarily win money.
Xu Cun took He Chaoqiong's hand, dragged her into his arms, and said with a smile, "Why, are you afraid?"
He Chaoqiong put his arms around Xu Cun's waist, then leaned his head against Xu Cun's arms, and said softly: "Well... the people in Taiwan are so crazy, I'm really afraid that they will push the index to more than the 15,000 they said. In that case, Even if we invest another 20 billion U.S. dollars, it will all be grinded by this meat grinder!"
Xu Cun slowly put his hand into He Chaoqiong's clothes, and said with a smile: "Markets always sprout in despair, advance in doubt, and disillusion in joy."
After tasting what Xu Cun said that seemed to be very philosophical, He Chaoqiong looked up into Xu Cun's eyes - He Chaoqiong wanted Xu Cun to explain to her the specific meaning of this sentence now.
But after raising his eyes, what He Chaoqiong saw was the burning heat in Xu Cun's eyes!
He Chaoqiong, who has been with Xu Cun for more than ten years, is so familiar with this kind of hotness. He Chaoqiong gave Xu Cun a blank look, and then slid down Xu Cun's legs to the ground, and then reached out to relieve Xu Cun. Save the belt...
"Hiss..."
After He Chaoqiong buried his head between Xu Cun's legs, Xu Cun said sternly: "You will ask Xiao Ai to raise another 10 billion US dollars to cover the position, and then continue to sell short... I really underestimated the Taipei stock market before." potential……"
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