Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.
Author: Chen Ming.

According to The Wall Street Journal, a group supported by BlackRock and Citadel Securities plans to establish a new stock exchange in Texas, USA, which aims to challenge the New York Stock Exchange and the Nasdaq.

One important background of this is that in recent years, the US stock market has continued to rise, and the Nasdaq index broke through the 17,000 point mark at the end of May. Since 2009, the index has risen nearly 10 times.

Some analysts pointed out that the establishment of the new stock exchange is expected to increase market competition, which will affect the market share of existing exchanges but can provide investors with more options.

The new stock exchange.

A group supported by BlackRock, Citadel Securities, and other investors is planning to launch a new national stock exchange in Texas, USA, which aims to challenge NYSE and Nasdaq's heavy regulation.

The new Texas stock exchange, the Texas Stock Exchange (TXSE), has raised about $120 million and plans to submit registration documents to the US Securities and Exchange Commission (SEC) later this year.

TXSE CEO James Lee said the exchange will try to attract companies seeking to ease compliance costs at the New York Stock Exchange and Nasdaq. Although TXSE is completely electronic, it will be headquartered in Dallas to support metropolitan areas that offer financial jobs from companies like Goldman Sachs and Charles Schwab.

James Lee said TXSE aims to conduct its first transaction in 2025 and go public in 2026. But any effort to compete with NYSE and Nasdaq will face serious challenges, and the efforts of other emerging exchanges to enter the old market also face major obstacles.

A spokesperson for Citadel Securities confirmed that the company is an investor in the project. However, BlackRock declined to comment.

On its website, TXSE said: "The Texas Stock Exchange will focus on enabling US and global companies to enter the US stock capital market, and will provide trading and listing venues for listed companies and growing trading products. TXSE will be a fully electronic national securities exchange that seeks registration with the SEC."

In the United States, stock trading is mainly concentrated in three exchanges: the New York Stock Exchange (NYSE), the Nasdaq Stock Exchange (NASDAQ), and the American Stock Exchange (AMEX).

Among them, the New York Stock Exchange is the largest stock exchange in the world, with more than 1,900 listed companies and a total market value of over US$38 trillion; the Nasdaq Stock Exchange is the second largest stock exchange in the world, with more than 3,300 listed companies and a total market value of over US$31 trillion. The American Stock Exchange is relatively small in scale, with more than 240 listed companies and a total market value of over US$100 billion.

On the evening of June 3, the New York Stock Exchange experienced a technical failure, which caused Buffett's company to fall 99.97% at one point. On June 4, the New York Stock Exchange cleared all error trades of Berkshire Hathaway and the low-priced purchase of Buffett's company's stock was invalid. In addition, the New York Stock Exchange also cleared the error trades related to "Accenture". The New York Stock Exchange said that the reason for the abnormal quotation was a technical problem with the price range, and the technical problem has been resolved. $Berkshire Hathaway-A (BRK.A.US)$ $Bank of Montreal (BMO.US)$, $Barrick Gold (GOLD.US)$On May 30th, there was a technical issue with the US stock market. During that trading day, the S&P 500 index and the Dow Jones Industrial Average suddenly stopped real-time quotes for nearly 80 minutes, but individual stock trading was not affected.

The Nasdaq has risen nearly 10 times.

Since this year, the US stock market has repeatedly hit new highs. On May 15th, the Nasdaq broke through 5,300 points; on May 16th,

$S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$For the first time in history, it broke through the integer barrier of 40,000 points; on May 28,$Nasdaq Composite Index (.IXIC.US)$It closed above 17,000 points for the first time. Since 2009, the NASDAQ has risen nearly 10 times, the S&P 500 index has risen nearly 5 times, and the Dow Jones Industrial Average has risen more than 3 times.

Recently, the U.S. stock market has remained at high levels of volatility. As of the close on June 4th, the Dow Jones Industrial Average rose 0.36% to 38,711.29 points, the NASDAQ Composite rose 0.17% to 16,857.05 points, and the S&P 500 index rose 0.15% to 5,291.34 points. With regards to individual stocks,.$NVIDIA (NVDA.US)$rose more than 1%, the stock price continued to set historical new highs, and the market value reached 2.86 trillion U.S. dollars;$Apple (AAPL.US)$rose 0.16%, and the closing market value approached 3 trillion U.S. dollars.

Tianfeng Securities pointed out that since October 2023, the overall return of the magnificent seven, the technology giants in the S&P 500 components, has been significantly higher than other stock combinations, indicating that the U.S. stock market has higher exposure to larger weights. The ratio of S&P 500 equal weight index to weighted index also broke through the September 2020 low point and approached the historical bottom since 2009, reflecting the overall high crowding of the U.S. stock market. It is necessary to pay attention to the possibility of a significant decline in major weight stocks in the future when the VIX index is low and the skewness index is on the rise.

In terms of investment strategy, Tianfeng Securities stated that under the benchmark assumption of a soft landing of the US economy and the continuation of loose financial conditions, US stocks may maintain an upward trend in the mid-term dimension, but there may be signs of overheated market sentiment in the short-term, and it is prudent to hold a phased cautious view of US stocks.

Wall Street analysts also have significant differences in their views on whether the US stock market can continue to rise over the next few months. Jeremy Folsom, an investment strategy analyst at Wells Fargo & Co, recently stated that the S&P 500 index will reach a historical new high of 5,700 points by the end of next year, partially due to the sharp rise in the index before and after the 2012, 2016 and 2020 US presidential elections. Jeremy Folsom further explained that from early 2012 to the end of 2013, the S&P 500 index rose by 47%, and there were also significant rises during the two subsequent US presidential election periods.

Jeremy Folsom also stated, 'Although cash and cash substitutes are currently very attractive, we believe that given our expectation that rates will decline as the Fed rate cycle comes to an end, this is not a good place for long-term investments.'

Tom Lee, the head of research at Fundstrat, known as the 'Wall Street prophet,' recently stated that the stock market will receive positive support in June and can be bought on dips if there is a pullback. He predicts that driven by five positive market catalysts, including bullish seasonal factors, continued anti-inflation trends, low investor leverage, a record $6 trillion in 'watchful cash,' and steady corporate earnings results, the S&P 500 index may rise to 5,500 points in June.

Marko Kolanovic, chief market strategist at JPMorgan, stated that the survival of meme stocks is a bad sign for the overall U.S. stock market. In a recent report, Kolanovic reiterated his bearish view on the stock market. Although the S&P 500 index is now less than 1% away from its historical high, the target price given by the strategist is only 4,200 points, which is the lowest on Wall Street, which means that the index will fall more than 20% from its current level.

Brian Sozzi, a Wall Street industry and strategic analyst and executive editor at Yahoo Finance, believes that the technology industry may not be as healthy as it appears, and popular technology stocks may experience a pullback this summer as investors re-evaluate their valuations.

Editor / jayden