Showing posts from May, 2021

Dow Jones 125 Years : Investing For The Long Term

  A person watching the tide coming in, and who wishes to know the spot which marks the high tide, sets a stick in the sand at the points reached by the incoming waves until the stick reaches a position to where the waves do not come up to it, and finally recede enough to show that the tide has turned. This method holds good in watching and determining the flood tide of the stock market. The average of [stock prices] is the peg that marks the height of the waves. Like those of the sea, the price waves do not recede all at once from the top. The force which moves them checks the inflow gradually, and time elapses before it can be told with certainty whether the high tide has been seen or not.” — Charles Dow, creator of the Dow Jones Industrial Average, on January 31, 1901, edition of The Wall Street Journal Dow Jones Industrial Average:  Celebrating 125 Years < Sources: S&P Global > "As of May 26, 2021, the Dow Jones Industrial Average will have been determining the floo

US vs China : Divergence of Monetary and Fiscal Policies

  Tow Super-power Economy Are Moving In Different Directions From economic data, stock market indexes to personal debts/ loan growth, both US and China are moving in different directions. The US is in a “super-easy and stimulus “ mood that they are moving the two engines of “ Monetary “ and “ Fiscal” stimulus to the max. Both monetarist and Keynesian work hand in hand this time round to re-charge the sluggish economy due to the Covid-19 pandemic. Because of the “ supremacy of USD “, the US can continue to do the unlimited QE and keep printing money and also issuing very low long term treasury bills by selling it to the world, which smaller countries can just dream of. By using the dollar and SWIFT, the US can just sanction anyone or country who they deem as “evil” and challenging their system/belief. China is winning the digital currency race. Can it unseat the dollar? <> Fed chair Powell floats central bank digital currency and more regulation of cryptocurren

Crisis = Danger + Opportunity? (危机 = 危险+ 机会)

  Market had rebounded strongly from last Friday’s dip after government announced the new tightening measures (partial-Circuit Breaker) in response to increasing local transmission cases to double digit figure which we never seen for quite some time. There was also an increased in un-link cases among the communities which I think is much riskier as many are shown as “asymptomatic “, one of the reasons might be because those already have their Covid-19 vaccine taken and will still being infected but with lesser severity. Panic-selling after the announcement on last Friday causing the STI index to drop by more than -90 points at one time, but the index has since rebounded to the level higher than pre-announcement as of now.                                                         STI Index ( 14 May -18 May 2021 ) <Image source :> By judging from what's market reactions, it seems that we are more confident this time around that we will be able to curb the spre
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