| Abstract | Liquidity problem, turbulence in the stock market, financial crisis, and periodical recessions in the economy have long frustrated regulators and investors all over the world, but in fact can be eliminated. This paper abandoned the neoclassical equilibrium price theory, which actually caused above problems, employed the methodology of normative economics, and built a brand new axiomatic value theory from ground up. The value investment strategy based on our theory gained a huge exess return that is totally unexplainable by the Fama-French 3-factors model, which in turn empirically supported our theory. Futhermore, guided by our theory, stock market turbulence can be eliminated, and an economy with sustainably stable high speed growth is possible. |