Chapter 27 Use "investment" to improve "IQ"

First of all, you should clarify your position in this world-positioning. This is what every country is doing today in the context of global economic integration. This is what anyone who thinks about it, from ordinary people to heads of state, should do. Regarding the global decline in stocks including Japan, I was also asked "how to adjust the funds invested in management".To this, my answer is: "It depends on the general situation of the world." Looking around, not every country in the world is seeing stocks falling, and there are also markets where stock prices are relatively strong, such as Brazil and Canada.When the financial turmoil hit in October 2008, the stock prices of these countries also fell sharply, but the economy rebounded after a short period of downturn, making them ideal investment places again.

You may unconsciously think why not invest in low-risk necessities, but what you have to think about is "Is it enough to only operate necessities?"For example, something that is simple to manufacture but not of high value, such as aluminum products, will not increase in value no matter how long it takes. Please think about another question, which is about the "biofuel" that has attracted much attention due to the rise in crude oil prices. Its raw material is corn. It is not difficult to predict that it is not corn that will rise in price, but the land where corn is grown.

Land is to corn what oil fields are to oil.The difference is that oil extraction does not require reclamation, but precise detection.In short, due to the high value it owns, the era of high farmland prices will surely come. After investigation, it is not difficult to see that the price of farmland in those countries, especially Brazil, is now rising sharply.Now, some Japanese companies are also involved in the development of farmland in Brazil, but they should also think about whether there is better land in Ukraine or Romania besides Brazil?Also, besides corn, are there other more efficient bio-raw materials?Just look it up on the Internet, and you will find information such as "Hay and elephant grass are expected to become new energy sources."

With such investment wisdom, the way of seeing and thinking about things will change.In the future, not only in the economic field, but also in the political and cultural fields will have a broad vision.Only in this way can Japan realize its dream of contributing to the world or becoming one of the world's great powers by relying on its own strong strength. This is the so-called "intelligence quotient". The first thing the Japanese, especially the top leaders and bureaucrats of Japan, should do is analyze the status quo carefully and then put it into action with determination.If this "IQ" can be penetrated into the brains of every citizen, then the "collective IQ" of the Japanese can also be improved.

From the perspective of public opinion formation, this can be said to be a media effect. However, Japanese politicians, bureaucrats, and media, not to mention being indifferent to what is happening in the world, even know nothing about what is happening in the domestic stock market around them.Some politicians have proposed a countermeasure of no longer taxing stock market transactions, but that is putting the cart before the horse.Those who think that the stock price will rise if the performance of the company increases, and the situation will become better when the stock price rises, have completely reversed the cause and effect relationship, which fully exposes their ignorance of the reasons for the formation of stock prices.

If they understood the importance of foreign investment to the Japanese market, they would not interfere with things like the acquisition of Bull-Dog Smice by US hedge fund Steel Partners.