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Hossein Khajoui: When financing does not lead to production, it encourages the growth of inflation.

Tehran, March. 02(SENA)-"The most sustainable financing is a way for us to increase our national wealth in proportion to the growth rate of liquidity," Pasargad Bank brokerage deputy director of investment for future security told the Securities  and Exchange News Agency (Sena). This method is achievable by investing shareholders in the capital market. On the other hand, financing without increasing national wealth will definitely be inflationary and quasi-monetary enhancer.

"Currently, the capital market is extremely valuable," he said. "This is especially evident in industries that have a lasting competitive advantage, such as the petrochemical, steel and mining industries."

"Part of this is due to the issuance of bonds by the government in order to cover the budget deficit," Khajoui said, noting that the market has not reacted positively to its value. Following this trend, banks were forced to buy bonds, which led to a lack of liquidity in the capital market.

He added: "Currently, the number of active stock codes has increased sharply compared to the last two years; This spectrum is often the same people who used to buy emotionally and without analysis when the market climbed, and now in negative market conditions, they are involved in sales lines without analysis and do not have a clear understanding of selling their stocks. These people often sell regardless of the value of their stock. In my opinion, this trend has caused the market to collapse in the current situation.

The capital market expert added: "In continuation of these emotional behaviors, one can now see the influx of liquidity from ignorant people to the cryptocurrencies such as Bitcoin." Therefore, what has caused the market to deviate too much in a negative direction is the activity and lack of sufficient knowledge of this group of shareholders.

Khajoui emphasized: Negative market conditions will definitely end, but you must think of a basic solution for shareholders who do not have enough knowledge in the capital market. It may be better for newcomers to be taught the necessary knowledge first, and it is not even bad to do the necessary tests during a principled test to ensure that they have the ability to enter the capital market.

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