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: Zhou Le.

On November 9, Eastern Time, the White House in the USA issued a statement that, at the invitation of President Biden, Trump, who won the 2024 presidential election, will meet with Biden at the White House at 11:00 on the 13th (next Wednesday) Eastern Time.

Another focus of the current market is the formation of Trump's cabinet, with the field of tariffs becoming one of the important topics of concern. The latest news reveals that Robert Lighthizer, who was known as Trump's "trade czar", may return to the White House and once again serve as the US Trade Representative.

After Trump's victory, the US stock market surged all the way, but the bond fund giant, PIMCO, suddenly issued a warning that Trump's return policy plans may worsen inflation and economic overheating, impeding the Fed's interest rate cuts, which is a dangerous signal for the US stock market.

White House announcement

On November 9, Eastern Time, the White House in the USA issued a statement that, at the invitation of President Biden, Trump, who won the 2024 presidential election, will meet with Biden at the White House at 11:00 on the 13th (Wednesday) Eastern Time.

Currently, no more other details have been disclosed.

On the 7th local time, Biden claimed to ensure a 'peaceful' transfer of power to Trump in January next year and called on American citizens to accept the election results. In a national address, he said, 'I will fulfill my duties as president. I will keep my oath, and I will uphold the constitution.'

He said, 'On January 20th, in the United States, we will have a peaceful transfer of power.'

Biden said that on the 6th, he had a conversation with Trump, congratulating him. Biden also assured Trump that he would instruct the entire government to cooperate with the Trump team to ensure a 'peaceful and orderly' transition.

Biden called on American citizens to accept the will expressed by voters in this week's election. He said, 'You can't only love your country when you win.' 'We accept the choices made by this country.'

According to the National Broadcasting Company (NBC) in the United States, on the 7th local time, the U.S. President-elect Trump stated that he and the current President Biden agreed during the call to 'have lunch together soon.'

Reports say that Trump, in an interview with the U.S. media, mentioned that after securing victory in the 2024 U.S. presidential election, he had conversations with both Biden and Harris, 'very happily, with mutual respect for each other.'

Trump revealed that Harris discussed the transition of power, 'She said she hopes the transition goes as smoothly as possible, and I of course agree with that.'

In the interview, Trump also talked about his top priorities after taking office, including solving immigration issues and making border control "strong and powerful".

Reports indicate that Trump has repeatedly stated his intention to carry out the "largest deportation operation in American history." When asked about the cost of his plan, Trump said: "This is not a matter of price," but that his government "has no choice" but to fulfill these commitments.

A key figure

Another focus of the current market is the formation of Trump's cabinet. In the field of tariffs, it has become an important topic of concern for all parties. The latest news suggests that Robert Lighthizer, who was once Trump's "trade czar", may return to the White House and once again serve as the United States Trade Representative.

According to the Financial Times of the United Kingdom, on November 9th, informed sources revealed that as Trump began to form his cabinet, Lighthizer has been invited to serve again as the United States Trade Representative, despite his lobbying for positions such as Secretary of Commerce.

Lighthizer was highly regarded by Trump. During Trump's first term in 2016, he was one of the few senior officials who did not incur the president's wrath. As Trump's first trade representative, Lighthizer led the foreign trade policy of the Trump administration, during which the United States imposed high tariffs on trading partners, including allies.

Lighthizer worked at the Wall Street law firm Skadden Arps for thirty years and helped persuade the Bush administration to impose tariffs on imported steel to protect the American steel industry. During his tenure as the United States Trade Representative, he pushed Washington to shift trade policy from purely pursuing commercial interests to focusing more on reshoring manufacturing and protecting American workers.

On the eve of the US election, Lighthizer wrote in the Financial Times, attributing the loss of American manufacturing jobs to free trade and stating that the US trade deficit is "worrisome." He wrote: "Faced with a system that seriously harms our country, Trump decided that action must be taken."

Super giants issue a warning.

Bond fund giant - Pacific Investment Management Company (PIMCO) issued a warning that Trump's return policy plans may exacerbate inflation and economic overheating, hinder the Fed's rate cuts, which is a dangerous signal for the US stock market.

Pimco's Chief Investment Officer Dan Ivascyn warned in a recent speech that if Trump wins, the US stock market may reverse sharply after a steep surge. At a time when the US economy is strong, Trump's "re-inflation" policies could trigger inflation issues, and risk assets should not be blindly optimistic.

Dan Ivascyn stated that the situation is not as simple as it seems, and not a one-way "re-inflation" trade, risk assets should not be blindly optimistic. You need to remain cautious about the results you expect.

Market analysts believe that if Trump governs as expected, implementing established policies of imposing tariffs, corporate tax cuts, and increased spending, the risk of US inflation will further escalate. Ivascyn stated that Trump's policies, when the US economy is strong, may lead to economic overheating.

Dan Ivascyn believes that the timing of Trump's policies being implemented is when the economic growth momentum is sufficient, which may lead to economic overheating.

Dan Ivascyn stated that rate cuts may pause, and the sharp rise in US stocks after the election looks fragile. This means that one might need to be more careful in valuing risk assets.

Editor/Rocky