KevinChenNYC
KevinChenNYCCertificated Individuals
Tiger Certification: Chairman & CEO, EDOC Acquisition | Adjunct Prof. New York Univ. | CIO, Horizon Financial
23Follow
237Followers
1Topic
0Badge

The core of this year's US election is Sweep! To win big!

I attended the $BlackRock(BLK)$ Private Equity Summit today, which was quite rewarding. Blackstone's chief economist believes that the Fed's rate cuts will be less frequent and smaller than expected, and that inflation is likely to restart next year, with a new round of rate hikes beginning in October 25.The core of this year's US election is Sweep! To win big! Neither side wants to just win the White House, not a small win but a big win, and both sides are shouting to sweep the White House and Congress!Doing well on the fiscal front is critical. Neither Trump nor Harris has prioritized fiscal discipline, and the US federal deficit is likely to remain around $2.0 trillion per year for the next few years. Whether the deficit situation can be changed
The core of this year's US election is Sweep! To win big!

The Federal Reserve is likely to Change its Policy at the November Meeting

The recent U.S. macroeconomic data is so strong that the Federal Reserve regrets cutting interest rates. [Cute]The latest retail sales data for September and the first two weeks of October show that, driven by solid employment growth, strong wage growth, and high stock and housing prices, U.S. consumers continue to perform well. #KaiFeng Fundamentals#The Atlanta Fed's GDP forecast for the third quarter is currently 3.4%, with the bottom line being that economic expansion continues.Why are the upcoming data so strong? Because the factors favorable to the economy are increasing:The Federal Reserve is dovish.High stock prices, high housing prices, and tight credit spreads.Open public and private financing markets.The CHIPS Act, IRA, Infrastructure Act, and defense spending continue to support
The Federal Reserve is likely to Change its Policy at the November Meeting

$SE break new 52w high! Let's gooo!

$Sea Ltd(SE)$ attract my eyes agian.$Sea Ltd(SE)$ stage 2 breakout on deck. 1.5B stock, I like it when it moves.Image $Sea Ltd(SE)$ is transforming the business successfully into a cash flow machine, proving its gaming franchise is evergreen, cementing its e-commerce dominance, and growing its fintech at 20%+ durably. At a $2B free cash flow run rate and a $9B cash pile, the stock is priced for more upside at 21x FCF.Cite from Riyado Sofian: “At $77, rate cuts, Free Fire India relaunch, and margin expansion due to products like advertising, have not been priced in. Trading at only 3x its Revenue, SE stock still has plenty of upside.”- Diversification - Exposure to Asia
$SE break new 52w high! Let's gooo!

US Jackson Hole Preview: Turning Point Anticipated

We expect Federal Reserve Chairman Powell to hint that upcoming data supports the FOMC to begin policy normalization as soon as possible, which almost solidifies the expectation of a rate cut in September. Although we believe Powell won't rule out the possibility of a 50 basis point rate cut in September, he might downplay concerns about the Fed being behind the curve or the U.S. economy deteriorating rapidly. Our base forecast remains a 25 basis point cut. We anticipate that by the end of the year, the Fed will have accumulated a 50 basis point rate cut. However, the risks to this view are becoming more one-sided, with more evident weakness in the labor market potentially challenging the Fed's employment mandate, necessitating further easing.🚶‍♂️ Step Back Before the Rate Cut: Following t
US Jackson Hole Preview: Turning Point Anticipated
Massive retreat of short #Yen trade. Very typical global risk off.Image

Berkshire Hathaway has reduced its stake in BYD to less than 5%

Warren Buffett's $Berkshire Hathaway(BRK.B)$ has reduced its stake in $BYD Co., Ltd.(BYDDY)$ to less than 5%.The Chinese electric vehicle manufacturer's sales volume has increased by 28%, but domestic price competition poses risks. $BYD Co., Ltd.(BYDDY)$ 's new car sales from January to June increased by 28% year-on-year, reaching 1.61 million units.Guangzhou - According to a document submitted to the Hong Kong Stock Exchange on Monday, Warren Buffett-led Berkshire Hathaway has sold more shares of the Chinese electric vehicle giant BYD. The American investment company has gradually reduced its holdings from about 20% to less than 5%. Berkshire sold 1,395,500 s
Berkshire Hathaway has reduced its stake in BYD to less than 5%

Feelings of Omaha/2024 Buffett Shareholders Meeting/Value Investment

This year is the fastest time I have run in the "Invest in Yourself 5K" for more than ten years, and I finished the run in 30 minutes! It is also the year with the greatest gains in participating in the shareholders' meeting in more than ten years. $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ 1. I met so many new and old friends. Our Omaha Value Investment Center/China-US Venture Capital Forum has been held for the ninth year. Professor Shi Yong [good], Tencent, Sina organized Chinese investors' cocktail reception, CFA Association, Value X BRK and other various cocktail receptions and dinners are all super great!2. Mr. Buffett is still vigorous. This year, we had a marathon-like exchange for
Feelings of Omaha/2024 Buffett Shareholders Meeting/Value Investment

Greetings from #Omaha … any other #Buffett groupies here?

Greetings from #Omaha … any other #Buffett groupies here? $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ #Berkshire annual meeting!#Omaha #Valueinvesting It’s raining a lot in Omaha, almost like Dubai now, too much rain… #Flood#warrenbuffett $Berkshire Hathaway(BRK.B)$ CFA society in Omaha! Great gathering about why not to invest in #Bitcoin
Greetings from #Omaha … any other #Buffett groupies here?

Why is the Fed not cutting rates & talking about hiking them this year?(3)

4.Outlook for the Next Steps"Currently, the US economy faces both short-term and long-term challenges. In the short term, inflation in energy, food, real estate, and the service industry continues to rise. The Federal Reserve certainly cannot cut interest rates now, and the earliest possibility would be in June. This year is also an election year in the United States. According to convention, with the election scheduled for early November, the Fed can only stay put in September and October, regardless of whether it's cutting or maintaining interest rates. Any changes in monetary policy during the two months before the election will be labeled as "politicizing monetary policy." As an independent institution authorized by the US Congress, the Fed will never be dragged into political turmoil.
Why is the Fed not cutting rates & talking about hiking them this year?(3)

Why is the Fed not cutting rates & talking about hiking them this year?(2)

2."Is US Inflation Making a Comeback?"Certainly, the biggest variable regarding interest rate cuts is inflation. This year's inflation data has put the Federal Reserve in a somewhat awkward position. Firstly, energy prices have been steadily rising. Crude oil prices have reached $86, noticeably impacting Americans at the gas station.Gold prices have recently surged, breaking the $2300 mark and hitting historic highs, signaling market expectations of further inflation. While the Fed may attribute the rise in oil prices to Middle East tensions, financial markets find this hard to accept. Looking at the real estate market, the overall US housing market price index has risen by about 4% this year, and rents have increased. Consequently, the equivalent rent weight within the CPI is bound to con
Why is the Fed not cutting rates & talking about hiking them this year?(2)

Why is the Fed not cutting rates and talking about hiking them this year?(1)

Now it's early April, and the eagerly anticipated interest rate cut from the Federal Reserve, has yet to materialize. There have even been recent remarks from Fed officials suggesting the possibility of raising interest rates. In light of this, let's delve into some in-depth interpretation and analysis.One can reflect on the various optimistic statements in the financial markets since October last year. At that time, analysts from Goldman Sachs predicted that the Federal Reserve would begin an interest rate cut cycle in January of this year. While the consensus on Wall Street wasn't as extreme, there was also a belief that the Fed would initiate an interest rate cut cycle in March of this year.So why hasn't the Federal Open Market Committee (FOMC) acted to cut interest rates yet?1. Recentl
Why is the Fed not cutting rates and talking about hiking them this year?(1)
avatarKevinChenNYC
2023-12-12

Global Commercial property transactions collapse: Real estate is no longer a gold asset

Commercial property owners have thrived in a world of cheap debt, which has made real estate investments relatively attractive. But as interest rates rose, this high led to a predictable reckoning:"The scale of the cyclical resetting in property valuations is as big as the early 1990s or the global financial crisis," said Alex Knapp, chief investment officer for Europe at Hines, a $100 billion global private real estate investor. "This is a big one, if that wasn’t obvious." Many property owners are saddled with unrealized losses. Tom Leahy, executive director at MSCI Research, estimated in September that about 50% of commercial real estate assets in London are now worth less than what they were bought for. New York is doing relatively well, with only one in five in the red, but many office
Global Commercial property transactions collapse: Real estate is no longer a gold asset
avatarKevinChenNYC
2023-11-30

My Top 10 Predictions for Global Financial Markets in 2024

In 2023, all kinds of financial products on a global scale have undergone tremendous challenges. We have also seen many unprecedented financial phenomena. This requires us, as a cross-border financial institution, to carefully observe and meditate. It seems like only yesterday that I was writing about the top ten predictions for 2023, but the year has passed quickly.I remember when I first joined Morgan Stanley to work on Wall Street after graduating with a Ph.D. from the University of Lausanne in Switzerland over two decades ago. Each year-end, we would study the top ten global economic predictions for the coming year by the company's Chief US Economist, Byron Wien. The debates between him and Steven Roach, Morgan Stanley's Chief Economist at the time, on macroeconomic topics were immense
My Top 10 Predictions for Global Financial Markets in 2024
avatarKevinChenNYC
2023-11-06

China's growth has finally bottomed out, but is not the time to invest in Chinese equities.

China's growth has finally bottomed out, and a rare increase in the deficit this year suggests better prospects for growth in the near term. In 2024, we expect GDP growth of 4.5%, a balance between economic growth and deleveraging, while waiting for more policy signals. While more infrastructure stimulus should mitigate downside risks, sharp structural problems such as underconsumption and debt deleveraging will still take time and more difficult policy decisions to address.Therefore, we do not think that China's foreign exchange and interest rates will shine. If the strong dollar trend continues, the need to restructure debt while keeping domestic interest rates low will continue to limit the exchange rate of RMB. We expect only a mild bull steep rebound in RMB interest rates. With the is
China's growth has finally bottomed out, but is not the time to invest in Chinese equities.
avatarKevinChenNYC
2023-10-20

Powell of the Fed Chair: the U.S. economy is much stronger than we expected

Economic Club of New York welcomes the Federal Reserve Board Chair Powell to give a lunch speech today! He is laser focused on getting inflation down to 2%. He spoke about the stronger than expected consumption and labor market in the U.S. Powell of the Fed Chair: the U.S. economy is much stronger than we expected, given the high interest rate level…ImageImageImageImage
Powell of the Fed Chair: the U.S. economy is much stronger than we expected
avatarKevinChenNYC
2023-10-18

How the Israeli-Hamas Conflict Could Impact Global Financial Market?

Hello Tigers,This article was jointly written by Kevin Chen, chief economist of Horizon Financial, adjunct professor at New York University, and Cao Huining, professor at Cheung Kong Graduate School of Business.1. Crude oil, gold and foreign exchange markets On Saturday, October 7, after the outbreak of conflict, crude oil futures opened with a sharp 4.5% gain on Sunday night. However, many fund managers and sell-side analysts on Wall Street generally felt that the crude oil market's response was below expectations.The reaction appears to be lower than before for several reasons:Firstly, crude oil $WTI Crude Oil - main 2312(CLmain)$ prices have already risen sharply in September due to production cuts by Saudi Arabia and Russia. Compared
How the Israeli-Hamas Conflict Could Impact Global Financial Market?
avatarKevinChenNYC
2023-10-13

I don’t see any reason for the Fed to hike rate again.

Treasury yields dropped sharply, with the 2-year rate dipping below 5%. Market is calling the Fed bluff.ImageBond yields tend to peak around the time of the last Fed rate hike. I don’t expect any more rate hikes, which is why I turned positive on bonds recently.ImageCorporate earnings are going down. CEOs will talk about new challenges during their Q3 calls.I don’t see any reason for the Fed to hike rate again. If anything, rate cuts are coming for the U.S., Canada, Eurozone, and England…
I don’t see any reason for the Fed to hike rate again.
avatarKevinChenNYC
2023-09-25

The UAW strike ushered in a good show: two presidents will visit Detroit

After Trump reported that he would go to Detroit on September 27 to deliver a speech to the United Auto Workers.US. President Biden announced on social media that he will join members of the United Auto Workers in Detroit on the picket line on Tuesday.Biden likes to call himself the most pro-union president, and visiting striking workers — a highly unusual move for a president — is sure to send a strong message.“On Tuesday, I will be heading to Michigan to join the picket lines in solidarity with the men and women of the UAW as they fight for the value they create,” he wrote on X (formerly Twitter). “Now is the time for a win-win deal , keeping the U.S. auto manufacturing industry thriving through good-paying UAW jobs."Biden to join UAW pickets in Detroit as strike intensifiesUAW President
The UAW strike ushered in a good show: two presidents will visit Detroit
avatarKevinChenNYC
2023-09-22

The inflation is not likely to get to 2% before 2025

Insightful speech at @nyuniversity by Dr. Phillip Lane, Chief Economist of @ecb. The inflation is declining, but not likely to get to 2% before 2025. A sharp decline in credit activities in Eurozone is happening due to the banks’ cautious with lending. Very different from US.ImageUS Housing Starts fell 11.3% m/m to 1.283 million, the lowest since June 2020 as 7.5% mortgage rates reduced demand. The Home Affordability Index is the lowest since Bloomberg records began in 1986, and has fallen at the fastest pace on record.The data was last recorded at the end of Q2 when 30 year mortgage rates were 7.15% compared with 7.59% today.
The inflation is not likely to get to 2% before 2025
avatarKevinChenNYC
2023-08-10

No Recession Fears or Rate Cuts in 2023? Spotlight on 3 Industries for H2 2023

Hello TigersI am the Chief Economist at Horizon Financial Group and haveI have 12 years of experience as a visiting professor at New York College.Below are some of my expected views on the U.S. economy and U.S. equities in the second half of the year.The real impact of Fitch's downgrade of U.S. government bonds on the financial market is not smallIn the short term (3-6 months), there is no hope for an interest rate cut by the FedThank you to the IRA Act to stimulate the return of U.S. manufacturing, it is currently possible NOT THE TIME to predict a recessionIn H223, we are bullish on the oversold sectors of biotech, financial technology, and REITs, which are supported by AI technologyDisclaimer: The views in this article are for communication purposes only and not as direct investment adv
No Recession Fears or Rate Cuts in 2023? Spotlight on 3 Industries for H2 2023

Go to Tiger App to see more news