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

On December 12 local time, the House of Representatives in the USA passed a bill to add 66 federal judges nationwide. This is the first major expansion of the federal judicial system in the USA since 1990.

In the financial sector, reports indicate that Trump's advisors are seeking to reduce or eliminate bank regulatory agencies. According to the Wall Street Journal, insiders revealed that Trump's advisors and officials from his newly formed Department of Efficiency in Government have inquired whether it is possible to dismantle the Federal Deposit Insurance Corporation in the USA.

On the same day, reports also indicated that Congressman French Hill will take over as chairman of the House Financial Services Committee. The House Financial Services Committee is an important institution in the USA Congress, responsible for overseeing the financial industry and formulating relevant legislation, with duties covering the banking sector, the overall financial system, and the Cryptos market.

On Thursday local time, Trump also expressed support for approximately 0.045 million union dockworkers on the East Coast and Gulf Coast of the USA, stating, 'The savings from automation are far outweighed by the harm caused to workers.'

Let's see the detailed report!

The House of Representatives in the USA passed the bill.

According to CCTV news, on December 12 local time, the US House of Representatives passed a bill with a vote of 236 in favor and 173 against, planning to add 66 federal judges nationwide to alleviate the staffing shortages in federal courts.

This marks the first significant expansion of the US federal judiciary since 1990. The bill states that the number of judges will be gradually increased in six phases over the next 11 years, covering 25 federal district courts across 13 states, including California, Florida, and Texas.

Despite broad bipartisan support for the bill earlier, and unanimous passage in the Senate in August, Democratic lawmakers accused Republicans of delaying the vote until after Republican presidential nominee Trump won the election. This move is seen as providing Trump with the opportunity to prioritize appointing new judges.

In response to the bill, the White House expressed strong opposition, pointing out the political motives behind the delayed vote. Incoming President Biden has made it clear that if the bill is sent to his desk, it will be vetoed. House Speaker and Republican Mike Johnson responded that the new judges are to meet judicial demands and ensure fair and timely judicial services. However, Democrats emphasized that the Republicans are 'playing political games' and questioned whether the bill would further push the judiciary towards conservatism.

Trump is expected to have over 100 opportunities to appoint judges during his new term, having already appointed 234 federal judges in his first term. Currently, the Supreme Court of the USA has a conservative to liberal judge ratio of 6:3, which includes 3 conservative justices appointed by Trump during his previous presidential term. The passage of this bill may further expand Trump's influence over the federal judicial system.

Considering the abolition of the Federal Deposit Insurance Corporation?

According to the Wall Street Journal, Trump's advisory team and officials from the newly established Office of Government Efficiency have recently consulted on the possibility of abolishing the Federal Deposit Insurance Corporation (FDIC).

Reports indicate that insiders revealed these advisors further inquired about potential nominees for positions at the FDIC and the Office of the Comptroller of the Currency (OCC) regarding the possibility of merging deposit insurance functions into the US Department of the Treasury.

Reports indicate that any proposals regarding the abolition or restructuring of the Federal Deposit Insurance Corporation must be approved by the USA Congress before implementation. Although historically, USA presidents have reorganized and renamed government departments, there has never been a precedent for shutting down a major cabinet-level institution, and even for a non-cabinet level but crucial institution like the Federal Deposit Insurance Corporation, there are very few records of closures.

The USA banking industry holds an optimistic view towards the policy direction of the Trump administration, believing that it may relax a series of regulatory provisions, such as capital buffers, Consumer protection, and Industry consolidation reviews. However, the deposit insurance business of the Federal Deposit Insurance Corporation is considered an indispensable part of the financial system, and its sanctity must not be infringed. Any action that could undermine the public's confidence in deposit insurance could quickly trigger a chain reaction within the banking industry, especially during financial crises, where changes may intensify customer panic and pose a threat to financial stability.

Additionally, on December 12 local time, it was reported that Republican Congressman from Arkansas, former banker French Hill will serve as the next chairman of the USA House of Representatives Financial Services Committee.

The House Financial Services Committee is an important institution of the USA Congress, responsible for overseeing the financial industry and formulating relevant legislation, covering areas such as the Banking industry, the overall financial system, and the Cryptos market. Hill will succeed the retiring Patrick McHenry, and the formal appointment is expected to receive Republican approval in the coming days.

Trump: Supporting American dock workers.

According to the Associated Press, American elected President Trump stated on Thursday that he supports about 45,000 union dock workers on the Eastern USA and Gulf coast, whose labor negotiations have been stalled due to the polarization of port automation.

After meeting with Harold Daggett, leader of the International Longshoremen's Association representing port workers, Trump said in a post on Truth Social: "The money saved is nowhere near what it has cost American workers, in this case, the pain, harm, and damage caused by our dock workers."

The International Longshoremen's Association and the US Maritime Alliance (USMX) employers face a deadline of January 15 next year to conclude negotiations, which have stalled due to the automation of cargo loading and unloading. This deadline is only five days before Trump's inauguration.

The International Longshore and Warehouse Union strongly opposes automation, stating that it will kill job opportunities. Both parties agreed to end the three-day strike on October 3. Previously, with significant involvement from the White House and other officials from the Biden administration, the union secured a condition for a 62% wage increase over six years.

Trump stated on Thursday that employers, many of whom are from overseas, have earned record profits. Trump said, "I would rather these foreign companies spend their money on our great men and women at the docks rather than on machines, because machines are expensive and must be constantly replaced."

Editor/Rocky