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

$Bitcoin (BTC.CC)$The price has again set a new historical high!

On the morning of October 16th, in Peking time, the price of Bitcoin surpassed 0.106 million USD, rising more than 3% and setting a new historical high again. Last week, the elected president of the USA, Trump, stated that he plans to establish a US Bitcoin Strategic Reserve similar to the Strategic Petroleum Reserve. Trump said, "We will do great things in the field of Cryptos."

Data shows that since Trump won the USA presidential election on November 5, direct investments in Bitcoin US ETFs have attracted a net inflow of 12.2 billion USD (approximately 88.8 billion yuan).

In the Hong Kong stock market today, stocks related to the concept of Cryptos rose against the trend.$BOYAA (00434.HK)$At one point, it rose by nearly 10%. By the time the market closed, $BOYAA (00434.HK)$ it rose by 5.52%, $LINEKONG (08267.HK)$it rose by over 3%, $GRANDSHORES (01647.HK)$it rose by over 2%. At the same time, the Cryptocurrency ETFs also rose collectively, $ChinaAMC Bitcoin ETF (03042.HK)$Increased by more than 5%, $Bosera HashKey Bitcoin ETF (03008.HK)$Increased by 4.72%.

In addition, the cryptocurrency concept in the USA stock market strengthened before the opening.$MicroStrategy (MSTR.US)$Increased by over 6%, $Bakkt Holdings (BKKT.US)$ 、$Bit Digital (BTBT.US)$、 $Canaan (CAN.US)$ 、 $MARA Holdings (MARA.US)$ Increased by about 4%.

Bitcoin reached a new high.

On the morning of December 16, Bitcoin's price surged, increasing more than 3% during the session, reaching a high of 0.106648 million USD, once again setting a new historical high. Since Trump won the USA presidential election on November 5, Bitcoin has accumulated a rise of nearly 57%; during this period, US ETFs that directly invest in Bitcoin attracted a net inflow of 12.2 billion USD. Last week, Bitcoin rose for the seventh consecutive week, setting a record for the longest winning streak since 2021.

The new round of Bitcoin's rise is related to the latest remarks by Trump, the elected president of the USA. Last week, Trump stated in an interview, "We will do great things in the field of Cryptos". He pointed out that more and more countries are embracing Cryptos, but "we want to be the leaders". When asked if he plans to establish a cryptocurrency reserve similar to the oil reserve, Trump replied, "Yes, I think so."

Unlike the Biden administration's crackdown on digital assets, Trump is committed to creating a friendly regulatory environment for Cryptos. He has vowed to make the USA the "cryptocurrency capital". Recently, Trump appointed former PayPal COO David Sacks as the head of AI and cryptocurrency affairs at the White House, indicating his intention to promote the development of the Crypto industry. Earlier this month, Trump also nominated conservative lawyer and crypto enthusiast Atkins to head the US SEC.

Other countries are also considering strategic reserves in Cryptos. Earlier this month, Russian President Putin questioned the necessity of holding foreign currency reserves and suggested that Bitcoin might be a better option. Putin stated that the current US government uses the dollar for political purposes, weakening the dollar's role as a reserve currency in the global economy and forcing many countries to turn to alternative assets, including Cryptos. "For example, Bitcoin. Who can prohibit it? No one," Putin added.

Is it about to break through 0.11 million dollars?

IG Analyst Tony Sycamore stated that the reason Bitcoin's price has risen is due to weekend reports that Trump will advance the Bitcoin strategic reserve plan. Sycamore mentioned, "The next market target number is 0.11 million dollars. Because now we have received this news, the pullback that many people were waiting for did not occur."

Aya Kantorovich, co-founder of the institutional cryptocurrency platform August, analyzed that market participants are filled with expectations regarding Trump's support for digital assets and his commitment to make the USA the dominant force in the Global Crypto industry, and this optimism is directly reflected in the strong demand from institutional investors for Crypto ETF products.

According to data provider CoinGecko, the total value of the cryptocurrency market has almost doubled so far this year, reaching a record high of over 3.8 trillion dollars.

It is noteworthy that last Friday, the Exchange operator Nasdaq stated that "Bitcoin 'whales'". $MicroStrategy (MSTR.US)$ Will join.$NASDAQ 100 Index (.NDX.US)$This software manufacturer has shifted to leveraged bets on Bitcoin, shocking Wall Street. The company has been raising funds, investing billions of dollars in digital assets.

Sean McNulty, trading head of liquidity provider Arbelos Markets, said: “Now that MicroStrategy is listed on Nasdaq, index funds may buy its shares, which will help the company raise more equity to purchase more Bitcoin.”

MicroStrategy is an active investor in the world's largest crypto assets, with its stock price soaring more than five times this year, and a Market Cap nearing 82.8 billion dollars, making it the public company holding the most cryptocurrency right now.

Additionally, analysts pointed out that last week, the USA announced that the November Consumer Price Index (CPI) met market expectations, indicating that the Federal Reserve is likely to lower interest rates in December, which is also one of the reasons for the rise in Bitcoin prices.

In the USA, the overall CPI for November adjusted month-on-month was 0.3% (previous value 0.2%), year-on-year was 2.7% (previous value 2.6%); core CPI month-on-month was 0.3% (previous value 0.3%), year-on-year remained at 3.3%, all meeting market expectations. Although core Commodity prices rebounded due to the hurricane's impact, the increase in housing rents slowed to the lowest level since 2021, easing market concerns about rising inflation.

China International Capital Corporation pointed out that overall, the above inflation data has opened the door for the Federal Reserve to lower interest rates, but it is predicted that a "hawkish rate cut" may occur this week, and the Federal Reserve may reduce its guidance on rate cuts in the dot plot. The new dot plot is expected to show a total of 2 rate cuts in 2025 (previously 4), and the federal funds rate may be lowered to a neutral level of 3.75% to 4% by the end of Q2 next year.

Jefferies Financial Analyst Brad Bechtel stated in a report: “A rate cut in December is already a done deal, but after that, the pace of rate cuts will definitely slow down.” Additionally, Generali Asset Management expects that the Federal Reserve will emphasize making decisions based on future economic data regarding whether further monetary policy easing is necessary, and such actions will be cautious and slow.

CITIC SEC Research Reports indicate that overall, the employment market in the USA is showing marginal improvement, and the recruitment demand expectations in many industries in the USA are further improving. However, the number of unemployed persons increased in November. Considering that the current core inflation pressure in the USA is manageable, it is expected that the Federal Reserve will lower interest rates by 25 basis points at the December monetary policy meeting, with a potential rate cut of 50 basis points next year.

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Editor/rice