week 2

    I read a article about economic data. The subtitle stated that Warren Buffett doesn't rely on economic forecasts to make investment decisions - neither should you. It's shocking for me. Most of the time, people think the economic would affect the profit of their investment. They thought that the companies operate with the prosperity and the recession of the economy. If the economic is robust, the companies will earn more money, which means it will have higher share price. This ideas have been deep rooted in my mind and that's what my dad thought, too. However, this article totally overturn what we seen as common sense: people forecast thing based on what's happening currently. The author said that markets move so quickly that it's impossible to invest or forecast successfully. Instead of predicting whether the company can get profit or not in the future, choosing a company that is capable enough to deal with any kind of economic conditions can ensure your investment to be able to survive all the time.

week 1

    Though we can write anything we want on our blog, it will still be weird if I mention about personal stuff especially when I saw my classmates talked about economy on their blogs. I don’t read newspaper or magazine, taking this course will be a good way to force myself to read some. I searched for some online material for economy. There is an interesting article about who cares about economy. So a journalist asked his CNN’s readers to pick five social-justice topics and the result is different from what he expected, the rich-poor gap. Many statistics has shown that the gap between rich and poor is bigger. For example, 400 of the richest people in the United States control as much wealth as the bottom 50% of Americans. Seems like it’s inevitable to have this problem under capitalist economy. However, the government has the responsibility to prevent the gap from rising. Communism might be able to solve this problem that everyone can have the basic standard of living but then other problems will follow. In Taiwan, I think the government should levy more taxes on the rich and reduce the amount of unemployed people. Also, pay more attention on the social welfare. By doing this the problem won’t be root out but at least to prevent it from getting worse.