1. Financial instruments are constantly innovating: in the past, financial markets were only markets for financing and hedging. However, with the development of human beings, especially after the Second World War, financial instrument innovations in western developed countries have poured in. Futures, stock index futures, margin financing and securities lending, which were originally just hedging tools, have been used by speculators to make money by speculation. All these have increased the risks in the financial market.
2. Economic cycle: In the final analysis, financial markets still serve the economy. The economy has an upward channel and a downward channel, and the economic situation plays a decisive role in the financial market. The real estate market is the most obvious factor. For example, in the United States, Britain, China, Hongkong and Chinese mainland, as long as the real estate market is depressed, the real estate sector and the financial sector will immediately fall, driving the stock index down. Therefore, those who dream that house prices will plummet and the stock market will skyrocket can only be wishful thinking.
3. Human greed and ignorance: Lehman Brothers, which recently went bankrupt, won a year-end bonus of $40 million last year for its CEO's investment in the subprime bond market, and other Goldman Sachs and Morgan Stanley went further. At the beginning of 2007, the newspaper published the news that the year-end bonus of Wall Street investment banks was at least10 million. However, human beings are always wandering in constant innovation and greed and ignorance.
4. Geopolitics: For example, the Iran issue is the fuse, which led to the oil problem. Immediately attracted many speculators to speculate on the crude oil futures market, and a large amount of funds left the securities market. At present, the convenience of global capital flow affects the fluctuation of financial markets.
5. Man-made reasons: similar to the first reason, but different from the first one, because this is a man-made and long-planned conspiracy! Both Hong Kong and Japan have been baptized by western hedge funds. They generally use the strategy of two-way shorting in the stock market and foreign exchange market to run rampant in Asian financial markets. . . Asia has become a withdrawal machine in western countries for countless times. After the Vietnamese stock market crash, we once again saw the stock market short index and the foreign exchange market short exchange rate familiar to western developed countries. Fortunately, China did not launch stock index futures, otherwise. . .