Believe in Moirai, follow the trend and be fortunate.
So what is the trend? For more than 80 years, United States has been the dominating power of the world with stellar financial performance, due to a combination of factors such as natural resources, capital, innovation, and most importantly, military power. The dominance is gradually coming to an end, with China emerging at least as a stronger competitor than USSR or Japan. China has also been strengthening its military power, with gen 6 fighters showcase and nuclear carrier to come. Huawei's revival and emergence of deepseek imply that the containment on China is failing.
When a military war is no longer possible, a trade war is the only option left. Unfortunately, a multiyear tariff will not give U.S. manufacturing industry adequate time to redevelop the entire industry infrastructure. Take a simple item for example: a disposable cigarette lighter. Chatgpt reported a China city is producing 100 billions annually at a few U.S. cents each, and the retail price is $0.14. Will U.S. be able to produce it cheaper?
Communist party began to realize their monetary and fiscal policies are not adequate to stimulate the market, so they decided to ceed some power to the private sector this month. With stellar earning for BABA this week, the domestic investor's appetite for stock was finally re-ignited. In the coming weeks, we will see China domestic investors running back to the A-Share market, and overseas investors pouring into Hong Kong shares and A-share ETFs. The earlier you agree to it, the more you will benefit.
Once you agree to it, the next set of questions will be answered by ChatGPT: what stocks are there in U.S. and HK, what ETFs are there, what is the difference between FXI and KWEB, and between KWEB and KSTR, etc. I want to post this in Stocks, but still can't due to low karma. Oh well...
Believe in Moirai, follow the trend and be fortunate.