One of the world’s great trade routes was from China to Constantinople (Istanbul) – the myth is great goods moved on caravans around the great mountains (Himalaya Mountains) and Deserts (Taklamakan) across the Steppes (Plains) eventually the goods made it to Europe. The term silk was used because coinage was heavy (there were very few banks and lines of credit) but silk bolts came in a standard package and was lighter than coinage, so silk bolts was used as money or the ability to exchange for goods and services. In the book, Silk Road by Valerie Hansen published by Oxford University Press, New York, 2012, the author examines the archaeology evidence of how average people living in the towns along the road lived their lives to determine the effect of the road.

It turns out the volume of shipments – goods and services were mainly local to serve the community and the next community along the way. There were very few long camel trains, because one it was relatively expensive and two thieves would intercept long, so the average train was less than 10 animals – horses or camels. It also turns out, when the Chinese Emperor decided to move its army into an area – needing to pay the army soldiers – greatly increases the amount of commerce in the region. When the army moves bases as administration changes or emperors change, that has an effect. The real value of the silk road is besides goods being transported, people are transported and in multi cultural settings ideas, technology and artistic motifs are introduced and incorporated into the communities to make them better.

One of the technologies being introduced is paper. Originally paper is expensive – the alternatives are writing on sticks (think popsicle sticks tied together) the back of tree bark or leather from tanning animal rawhides.

Linking to dividend paying stocks, there are many myths in the marketplace and some of them are based on some sort of truth, but each type you have to examine the myth to see if it is reality. One of the better myths  is it is better to do nothing than something. This is true if you buy income producing stocks. The income or dividend allows you to do nothing while the company produces profit and because it is successful over a period o time the stock price rises. Markets fluctuate and when they do, it is always good to consider why did you buy the company’s shares?

There are more questions than answers, till the next time – to raising questions.