Tuesday, November 16, 2010

5. Why did the stock market changing and unpredictable

 5. Why did the stock market changing and unpredictable?
In the natural sciences, one need only understand a certain rule, we can predict many of the unknown. For example, after Lomonosov found Periodic Law to predict some elements not found in the atomic structure, valence, and its physical and chemical properties. the people a correct understanding of the Earth's rotation, revolution and the law of nature law of the water cycle and air flow pattern after the meteorologist to can accurately make a forecast. Now, although the law of crustal movement is not fully recognized, but Section earthquake experts have been able to accurately predict near earthquakes.
in the social sciences,UGG boots, it is as long as the correct understanding of the some laws, but also able to predict many future things. For example, Marx explained the basic rules of human social development, China made clear to socialism from capitalism to communism, then the direction of development; Deng Xiaoping put forward the primary stage of socialism After the basic theory, the Chinese Communists to realize that the current development of the need for individual and private economy, individual and private economy also has been the rapid development mushroomed.
However, the social and economic laws in the implementation process is not smooth , because of various economic and social factors in particular, human factors, and its implementation process is often setbacks, and sometimes may even be doubtful whether the abnormal state of affairs law. For example, the former Soviet Union and the socialist camp misunderstanding, to make Many people at home and abroad on the law of social development of Marxism into question.
the law of value, too, in some eyes it seems to on the stock market does not work. from the actual situation, all commodity prices,UGG boots clearance, especially stock prices tend to abnormal changes in the value of its degree of departure from the large, often leading to staggering, incredible degree. the result,cheap UGG boots, the world no one can make the right judgments on the stock market, even the most astute economists, stocks often lose money. The reason why this abnormal state of affairs is not the law of value does not exist, nor is incompetent economists,UGG boots cheap, but because of the existence of social factors that disrupt the law of value. For the stock market, the disruption of the value of the most important factor is the role of law speculation, speculation is to make the biggest impact irrational some people to make irrational action. speculation more popular, the more insane people, the more is to make non-rational action. Results speculative stock market has become not only abnormal, but also the stock market does not seem normal to normal. this but changing the stock market, the underlying causes are difficult to predict. 

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