The coronavirus pandemic has turned our world upside down in the past few months. We have entered a new normal where many of our social and work activities have shifted online. We feel fortunate that global technology has developed rapidly in recent years so the world can continue its basic function under the current social…
The global economy entered a recession in the first half of 2020. OECD issued a global GDP baseline forecast of -6% in 2020, and GDP of -7.6% in a downside COVID-19 scenario. Geopolitical conflict and civil unrest continue to flare up in China/Hong Kong, the US and many parts of the world. A typical investor…
During the current Covid-19 outbreak in the last three months, we have observed investors continue to make many common mistakes in investing. We cannot help but notice that human nature have not changed much in past decades. The same mistakes are being made over and over again by investors. Here we discuss and elaborate on…
A pandemic with unprecedented social-economic impact The Covid-19 pandemic has become the one of most devastating global social-economic events in many decades. As of early April, the global death toll has reached almost 90000. The crisis has led to an almost complete shutdown of major global economies and an accelerated shift of most daily activities…
Shock events like pandemic and natural disaster are unavoidable It is important to note that pandemic, epidemic, and disaster are unavoidable events in human history. In recent years, we have seen numerous major natural disasters including the 2011 earthquake/tsunami in Japan (16000 deaths), 2004 Indian Ocean earthquake/tsunami (230,000 deaths), 2003 European heat wave (70000 deaths)….
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…
