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Economic Downturn and Market Transition

  • 2024-03-11 08:43:17
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Economic Situation. Nowadays, ordinary people’s feelings about the economic situation are that the economy is in a downturn, and it is difficult to work in all walks of life. They are laying off employees, restaurants are not eating, and are even about to close. House prices have fallen, rent prices have fallen, etc. This is different from the bubble economy in previous years. It is indeed much worse than that. At that time, house prices were rising, rent prices were rising, and incomes were rising every year. If they did not rise, they would often find reasons within themselves, but the bubble economy was definitely unsustainable;

The stage of stimulating the economy is used to inject vitality into the economy. The final result is actually to make the market bigger. After the market becomes bigger, many things will fall into place. Of course, the negative effect is that many things have bubble premiums and will fall later. Dropped, which is the current state.

Now is the elimination period. For most people, they will feel that nothing is good. However, if you look at the leading companies in most industries, they are often in the best stage of development, because many of those who did poorly have been eliminated. Although the market demand is also declining, business will get better and better after the demand is concentrated at the top. A simple understanding is that in an industry, there used to be 200 companies sharing the market, but now there are three to five companies. A good company is in a specific market...

This should be a normal state in the economic transition stage. During this stage, ordinary people will gradually adjust their expectations for the future. The so-called pessimism or optimism actually means whether people’s expectations for the future are high or low. If the expectations are adjusted down, it will be very difficult. It’s easy to be optimistic. Many people are pessimistic this year. After half a year to a year, after the expectations are gradually adjusted, the overall society is expected to enter a relatively healthy state. At this time, the market’s confidence will gradually return...

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