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: Shi Qian. Will this be the arrival of the "real wolf"? The consumption tax rumors suddenly spread in various investment groups yesterday after the close of trading. There are reports that a trillion-level consumption tax reform will be approaching, and luxury goods and high-end services may be the first to test. As of the close of trading this morning, consumer stocks suddenly rebounded collectively, and retail and duty-free areas led the rise. Among them,

President-elect Trump announced a series of appointments on Tuesday, local time, including appointing Fox News host Pete Hegseth as Secretary of Defense, Republican lawyer Bill McKinley as White House legal advisor, John Ratcliffe as Director of the Central Intelligence Agency, and Congressman Mike Waltz as National Security Advisor. In addition, Trump stated that Elon Musk and Vivek Ramaswamy will lead the new 'Government Efficiency Department'.

At the same time, the market is also experiencing a major upheaval. The US dollar and US Treasury yields continue to soar. Traders are increasing their bets on further declines in the US Treasury market. They expect that the policies Trump has promised to implement will reignite inflation and keep US interest rates high.

Data released on Tuesday showed that open interest on two-year note contracts rose for the fourth consecutive trading day. This indicates that traders have been establishing put positions after the election and ahead of the release of inflation data in October on Wednesday. As short positions expand, US bonds are being sold off, with yields rising by more than 10 basis points across the board on Tuesday. An indicator of bond returns is now only 1.4% away from erasing this year's gains.

Minneapolis Federal Reserve Bank President Neel Kashkari stated on Tuesday afternoon local time that US monetary policy is 'moderately tight', with short-term borrowing costs continuing to dampen inflation and economic growth, but not by a large extent. Earlier that day, Richmond Fed President Thomas Barkin had indicated that if inflation pressures rise or the job market weakens, the US central bank is prepared to respond.

Trump's latest appointments

According to a comprehensive report from CCTV news and the latest news from CCN, Trump has made many new appointments in the past 24 hours.

On November 12th local time, US President-elect Trump announced the appointment of John Ratcliffe, who served as the National Intelligence Director in his previous government, as the Director of the Central Intelligence Agency after taking office as president. He will also nominate Pete Hegseth as the US Secretary of Defense. Pete Hegseth, born in 1980, had served in the US Army National Guard and is currently a television host on Fox News.

Trump chooses South Dakota Governor Kristi Noem as the next Secretary of Homeland Security. Previously, he had selected former New York Republican Congressman Lee Zeldin as his Environmental Protection Agency Administrator.

Trump has selected Republican Congressman Elise Stefanik to be the US Ambassador to the United Nations. He also announced that Tom Homan, who served as the Acting Director of Immigration and Customs Enforcement during the previous administration, will be responsible for national border affairs.

Last week, Trump announced an important news that his campaign manager, Susie Wiles, will serve as his White House Chief of Staff, becoming the first woman to hold this position. Two sources familiar with the plan indicated that Trump is expected to announce his Chief Immigration Advisor, Stephen Miller, to be the Deputy Chief of Staff for White House Policy.

Informed sources also revealed that Taylor Budowich, a long-time advisor to Trump, is expected to be appointed as the Deputy Chief of Staff for Presidential Personnel and Communications in the coming days. According to two informed sources, discussions about the future role of Doug Burgum, the Governor of North Dakota and current Trump ally, have evolved to be known as the 'energy czar.'

According to sources, former SEC Chairman Jay Clayton is one of the candidates for Attorney General. Missouri Senator Eric Schmitt was previously a candidate for Trump's Attorney General, but he later withdrew from the list of candidates. Trump considers the Attorney General to be the most important position in his government.

Tennessee Republican Senator Bill Hagerty has called for an immediate reduction in aid to Ukraine and is considering multiple positions. There are several candidates for the position of Treasury Secretary, including Scott Benett, who is preparing to speak at the Trump Economic Club.

Involving the appointment of Musk.

President-elect Trump announced on Tuesday local time that Elon Musk and Vivek Ramaswamy will lead a new 'Government Efficiency Department' in his second term.

Trump stated in a declaration: 'These two outstanding Americans will work together to pave the way for my government to dismantle government bureaucracies, reduce unnecessary regulations, cut wasteful spending, and restructure federal agencies.'

The statement quoted Musk as saying, 'This will have an impact on the entire system, and it will impact anyone involved in government waste, and there are quite a few of them!'

Market Reaction

The three major Wall Street indices closed lower on Tuesday as investors took profits from the post-election rally and anxiously awaited the U.S. inflation data to be released this week. At the New York Stock Exchange, the ratio of declining stocks to advancing stocks was 3.48:1, with 328 stocks hitting new highs and 101 stocks hitting new lows. In the Nasdaq index, 1328 stocks rose, 3012 stocks fell, with a ratio of declining to advancing stocks at 2.27:1.$S&P 500 Index (.SPX.US)$55 stocks hit 52-week highs, while 16 hit new lows.$Nasdaq Composite Index (.IXIC.US)$Among them, 193 stocks hit new highs, while 129 stocks hit new lows.

Since the US presidential election on November 5th, investors have been betting on the prospects of President Trump's proposed tax cuts and relaxed regulatory policies to boost the stock market, leading to the above-mentioned stock indices hitting historical highs. However, on Tuesday, investors' enthusiasm waned as people worried about whether the policies of the next US government would exacerbate inflation. European stock markets fell by 2%, as European Central Bank policymakers warned that Trump's higher tariffs would impede global economic growth.

Some stocks that were expected to perform well during Trump's term have given back their gains.$Tesla (TSLA.US)$Also, the stock prices of hotung inv that had risen nearly 40% since Election Day fell 6% at the close on Tuesday. Small-cap stocks$Russell 2000 Index (.RUT.US)$also plummeted significantly. US Treasury yields rose.

Cresset Capital's Chief Investment Officer Jack Abram said that the 10-year U.S. Treasury yield is to some extent a resistance to the stock market. There are some conflicting signals, investors are celebrating all these growth measures, but the bond market is falling. The issue lies in the fact that tariffs, tax cuts, and immigration restrictions are indeed driving inflation pressures in the bond market that cannot be ignored.

Ampleprise Financial's Chief Economist Russell Price said that overseas stock markets falling, coupled with profit taking before the release of inflation data, has put some pressure on the U.S. stock market.

Investors are focused on Wednesday's consumer price inflation data, as well as later this week's producer price inflation and retail sales data, as these data points may provide clues to the future policy path of the Federal Reserve. Price said that these data indicate short-term risks for investments. "This is likely part of the reason for the downward trend we are seeing today."

Editor/rice