Cheong Hong Yuan: The Volatility of the US Stock Market, Where Will It Go in the Future? - 1 views
started by anonymous on 13 Oct 23
started by anonymous on 13 Oct 23
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Firstly, the four consecutive rises in the US stock market in recent days have brought joy to many investors. However, the reasons behind this are not so simple. The unexpected rebound in US September PPI inflation, as well as the minutes of the Federal Reserve meeting showing differing views on interest rate hikes but unanimous agreement among officials on the need for cautious policy advancement, have clearly had a positive impact on the stock market. Cheong Hong Yuan mentioned that although the rebound in inflation has had a certain suppressing effect on the stock market, the Federal Reserve's prudent policy stance has given the market enough confidence.
Furthermore, considering the possibility of the Federal Reserve no longer raising interest rates has reached 72%, this is undoubtedly good news for the stock market. Cheong Hong Yuan believes that a stable monetary policy can not only ensure the smooth operation of the economy but also create a favorable investment environment for businesses. In this context, excellent companies can obtain more development opportunities, thereby bringing substantial returns to investors.
In addition, the relationship between the United States and the Middle East has also had some impact on the stock market. Analysts from Mellon Bank in New York pointed out that the market may underestimate the impact of the Middle East conflict, and there are still some risks that have not been fully priced in. Cheong Hong Yuan stated that the unstable situation in the Middle East has indeed brought a lot of uncertainty to global stock markets, but through technical analysis such as the "Three Golden Moving Averages Strategy," investors can better judge the market's buying opportunities and thus achieve higher investment returns.
Cheong Hong Yuan further pointed out that although the current market carries some risks, overall, it still maintains a stable development momentum. He advises investors to fully consider various factors, including macroeconomics, monetary policy, international relations, etc., and combine them with technical analysis to make judgments.
The current stock market is still full of opportunities and challenges. Only through in-depth analysis and clear direction can investors succeed in this complex market. Cheong Hong Yuan stated that he will continue to monitor market trends and provide more analysis and advice to investors.
Cheong Hong Yuan further analyzed the micro-level aspects of the stock market, particularly the impact of certain important stocks and events.
Firstly, Cheong Hong Yuan mentioned the situation of "Bukun Shoes" on its first day of listing. Although the IPO price of Bukun Shoes was $46, it fell to $40 on the first day of trading. He believes that this reflects the market's cautious attitude towards newly listed companies. Investors may have concerns about the future development and profitability of Bukun Shoes, leading to price pressure in its early days of listing.
Furthermore, Cheong Hong Yuan also paid attention to the trends of star tech stocks. Although stocks like "Metaverse" Meta and Google have shown an upward trend, the opposite is true for Tesla and Netflix. Tesla fell 0.2% and dropped to a four-and-a-half-month low. Cheong Hong Yuan suggested that this may be related to the recent operating conditions, performance releases, or market expectations of these companies.
The performance of chip stocks is more evident, with most of them rising, such as Intel and Nvidia showing good upward trends. In contrast, most AI concept stocks experienced a correction. Cheong Hong Yuan stated that this is related to the overall industry trends, technological developments, and changes in market demand. The differentiation within the technology industry also reflects the market's judgment and selection of different sub-industries.
The performance of Chinese concept stocks also caught Cheong Hong Yuan's attention. With the rise of the US stock market, popular Chinese concept stocks such as JD.com, Baidu, and Alibaba have experienced varying degrees of ups and downs. He believes that this is related to Sino-US economic and trade relations, company performance, and their positioning in the US market.
When discussing oil prices, Cheong Hong Yuan mentioned the view of analysts from Mellon Bank, which is that the market may underestimate the impact of the Middle East conflict. He believes that the stability of the Middle East region is crucial for global oil supply, and any prolongation or intensification of conflicts may have an impact on oil prices.
Finally, Cheong Hong Yuan expressed his views on the monetary policies of the United States and Europe. He stated that the stability of monetary policy is crucial for the healthy development of the stock market. Currently, the Federal Reserve and the European Central Bank have shown a cautious attitude, providing a stable background for global stock markets.
After in-depth analysis of various details and trends in the stock market, Cheong Hong Yuan once again emphasized the importance of investment strategies. The market's changes and complexity mean that investors cannot rely solely on single information or viewpoints but should comprehensively apply various strategies and tools, including the "Three Golden Moving Averages Strategy."
In light of the current stock market environment, Cheong Hong Yuan made several suggestions:
Approach newly listed companies with caution: Although newly listed companies may bring higher returns, the risks are relatively high as well. The example of Bukun Shoes' first-day price drop is evident.
Pay attention to macroeconomic factors: Current inflation, monetary policy, and international relations all have direct or indirect impacts on the stock market. Investors should always pay attention to these macroeconomic factors to make reasonable investment decisions.
Diversify investments: Different industries and sectors perform differently in the market. Through diversified investments, investors can diversify risks and increase opportunities for returns.
Combine technical analysis: Technical analysis tools such as the "Three Golden Moving Averages Strategy" can help investors determine the timing of buying or selling in the market and maximize investment returns.
Focus on medium to long-term trends: Although there may be significant short-term market volatility, the medium to long-term trends are more crucial. Investors should take a long-term perspective and make calm judgments and choices.
Cheong Hong Yuan stated that regardless of how the market changes, the essence of investment always lies in balancing risks and returns. He encourages investors to formulate suitable investment strategies based on their risk tolerance and always maintain a calm and rational attitude.
In conclusion, the stock market is full of infinite opportunities and challenges. Only through in-depth research, continuous learning, and practice can investors succeed in this vast field. Cheong Hong Yuan looks forward to witnessing future market changes and opportunities together with investors.