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

Just now, news came that US President Trump stated that tariffs on Semiconductors will soon be imposed. Trump indicated that the tax rate on products made in the USA will be reduced to 15%; he will consider imposing tariffs on Pharmaceuticals, Steel, Aluminum, and Copper. The only way to avoid tariffs is to build factories in the USA. Meanwhile, US Treasury Secretary Basant is promoting a new tariff plan starting at 2.5% and gradually increasing.

As a result, compounded by the impact of DeepSeek, the Japanese stock market continued to plummet this morning, with SoftBank's decline reaching as much as 5%, and Tokyo Electron Ltd. Unsponsored ADR falling over 5%. Meanwhile, the foreign exchange market also experienced significant fluctuations today, with the USD rising sharply against the yen and the RMB.$USD (USDindex.FX)$also launched a counterattack.

In addition, Asian Stocks related to Datacenter fell sharply. Australia's Caimin Group ($Goodman Group (GMG.AU)$) once fell by 8.4%, $Nextdc Ltd (NXT.AU)$ fell by 9.3%, $HMC Capital Ltd (HMC.AU)$ fell by 6.7%, DigiCo REIT fell by 14%. Listed in Japan, $NVIDIA (NVDA.US)$ the testing machine supplier $Advantest (6857.JP)$ At one point, it fell 10%, Disco dropped 9.4%, and Furukawa Electric dropped 8.5%,$Fujikura (5803.JP)$dropping 9.2%. Malaysia $YTLPOWR (6742.MY)$ The stock price once fell 9.0%, $YTL (4677.MY)$ dropped 5.7%, $IJM (3336.MY)$ fell 6.6%,$GAMUDA (5398.MY)$fell 2.7%, $SUNWAY (5211.MY)$fell 3.3%.

Trump takes action

This morning, Beijing time, foreign media reported that Trump stated that tariffs would be imposed on chips and other products produced outside the USA in the near future.

特朗普当地时间周一在演讲中表示：“在不久的将来，我们将对美国之外生产的计算机芯片、半导体和药品征收关税，以将这些必需品的生产转移回美国。”

许多美国领先科技公司一直在从$Taiwan Semiconductor (TSM.US)$采购处理器，虽然台积电在亚利桑那州建立了一家工厂，但其大部分芯片生产仍在中国台湾进行，该公司一直为苹果、英伟达、$Qualcomm (QCOM.US)$和AMD等客户提供服务。

特朗普在猛烈批评美国的《芯片与科学法案》时表示：“我们希望他们回来。”该法案由他的前任总统拜登签署，旨在投资超过52 billion美元用于国内芯片制造业。“我们不想给他们数十亿美元，就像拜登给每个人的这个荒谬计划一样。他们已经有数十亿美元了，”特朗普说。“他们除了钱什么都没有。他们不需要钱。他们需要激励。激励就是他们不想支付25%、50%甚至100%的税。他们会用自己的钱建工厂，我们不必给他们钱。”特朗普补充道：“给了他们钱，他们却不知道要用这笔钱做什么。”

去年，英特尔从《芯片与科学法案》中获得了7.9 billion美元，这笔钱将用于扩建其在亚利桑那州、新墨西哥州、俄勒冈州和俄亥俄州的工厂，该公司正在这些地方建设一个新的芯片制造中心。

Even so, Trump still believes that his tariff threats will prompt more American technology companies to shift chip manufacturing to the USA. However, building a chip factory takes several years, meaning that imposing tariffs on chips produced outside the USA could lead to higher prices for many computer products, such as NVIDIA graphics cards, Apple computers, smartphones, and AMD processors, all of which come from Taiwan Semiconductor factories. Furthermore, the chips made by Taiwan Semiconductor are usually not directly exported to the USA, but are instead sent to other regions where they are assembled into Consumer Electronics products for shipment to the USA.

According to a report from the Financial Times in the United Kingdom on Monday local time, Trump's chosen Treasury Secretary, Bentsen, has been pushing for new universal tariffs on imported goods to the USA, starting with a tax rate of 2.5%, which will increase incrementally by the same amount each month.

Double Impact

This morning, the Japanese stock market was volatile, with Tokyo Electron Ltd. Unsponsored ADR briefly falling over 5%.$SoftBank Group (9984.JP)$It fell by 5% at one point. The Nikkei/Yen index dropped more than 1.3% at one point. Meanwhile, the Japanese yen fell sharply, and the USD surged again.

Analysts believe that, in addition to Trump's "raid," DeepSeek is also a significant factor in the massive shocks to sectors such as Semiconductors. DeepSeek has made progress in AI without investing the same amount of capital, leading to a severe devaluation in the AI sector of the USA's stock market, which could potentially impact the initiative launched by OpenAI in the USA last week.$Oracle (ORCL.US)$A 500 billion dollar AI project jointly invested with SoftBank.

NVIDIA testing machine suppliers listed in Japan. $Advantest (6857.JP)$ The stock price once fell by over 10%.

Interestingly, Trump's attitude was noteworthy. On Monday local time, he stated during a speech to House Republicans in Miami that the news about DeepSeek is 'positive' because 'you don't have to spend a lot to achieve the same results.' Trump indicated that this serves as 'a wake-up call for our industry, we need to focus entirely on competition to win.'

After a nearly 17% drop last night, NVIDIA also stated that DeepSeek represents an excellent advancement in AI and is a great example of expanding during testing. Research on DeepSeek demonstrates how to utilize the technology to create new models using widely available models and computing power fully compliant with export control regulations. The inference process requires a substantial amount of NVIDIA GPUs and high-performance networks. Currently, NVIDIA has three expansion laws: the continuously applicable pre-training and post-training laws, along with the new testing time expansion law. In Post-Market Trading, NVIDIA's stock price briefly rose over 3%, but later retraced.

The shockwave of DeepSeek may not have ended. The AI Community HuggingFace shows that DeepSeek just released the open-source multimodal AI model Janus-Pro. Among them, Janus-Pro-7B outperformed OpenAI's DALL-E3 and StableDiffusion in the GenEval and DPG-Bench benchmark tests. According to reports, Janus-Pro is the latest upgraded multimodal large model by DeepSeek, capable of generating images, describing them, recognizing text in images, identifying famous landmarks, and interpreting the content of images; currently, this model is available for download, with 7 billion and 1.5 billion parameters, meaning it can run on regular consumer-grade computers.

Editor/Rocky