Keeping Things in Perspective Today, many investors are worried about the presidential election in 2020, US/China prolonged trade war and the associated market volatility, we remind ourselves that stock investing is a long-term activity and represents partial ownership of dynamic, real-life businesses. A good business with a capable management team should be able to navigate…
Goldilocks economy in the US – not too hot and not too cold The US economy is currently in an ideal state with moderate but sustainable 2-3% annual growth, full employment, and low inflation. It is not too hot such that wages, commodity prices and inflation will rise and cause the Fed to raise interest…
Today, I have the pleasure of catching up with my business school professor Jeremy Siegel, best-selling author of the investment classic “Stocks for the Long Run” in San Francisco. He has been teaching at the Wharton School for 42 amazing years now since Fall of 1976! Here are my takeaways from his market outlook talk. …
WeWork failed IPO – What are the lessons for investors? As the global economy slows and asset valuation rises, it is getting harder to find good investment opportunities in some asset classes such as real estate where there are less value dispersion. Many individual investors are now looking for their next 10x baggers in the venture capital…
Throughout 2019, global markets have been climbing a wall of worries including political shock events like UK Brexit, US/China trade war and the anti-government street protests in Hong Kong. These widely reported geopolitical events have already negatively impacted investor and company’s investment sentiment and many stock markets. We view geopolitical events as un-avoidable and very…
In June 2019, global markets rebounded strongly more than offsetting the losses in May. Major US indices were higher led by Nasdaq +7.4%. Europe major indices were higher led by CAC 40 +6.4%. Asia major indices were higher led by Hang Seng +6.1%. We see two main drivers for the market rally in June: Lowered…
Many individual investors try to manage their own finances in order to save some money while others simply enjoy managing their own investments. In this age of real-time news, discount brokerage, index ETF and robo-advisor, it is easy to invest by yourself. However, the outcome is not always optimal. Studies have shown that the track…
I believe the technology sector will remain the best opportunity for investors in the next decade. It is already the largest single segment of the US market, eclipsing the financial and industrial sectors. More than anything, technology companies are associated with innovation and invention therefore I use a different methodology to perform due diligence on…
Transitions in the economic growth have a major impact on the prices of asset classes. Although every economic cycle is different, our historical analysis suggests that the rhythm of cyclical fluctuations in the economy has tended to follow similar patterns. The idealized pattern of economic growth cycle can be broken down into four distinctive phases…
Diversify by stock position and market cap – For most people with little knowledge and interest in investing, index ETF is a low-cost and effortless way to start achieving portfolio diversification. However, most index ETFs tend to concentrate in large-cap stocks. A lack of exposure to mid- and small-cap companies could leave potential growth opportunities…