To The Moon

FED determination The FED has been vocal about its commitment to bringing down inflation and achieving price stability. As a result, it has raised interest rates aggressively, and signs of inflation finally seem to be coming down. What we did not expect is the recent bank failures 2nd and 3rd largest bank failure in US history  The recent 2nd and 3rd largest bank failure in US history has taken many by surprise. The banks were unable to loan out money as quickly as depositors wanted to deposit their funds to take advantage of the current high interest rates in their savings accounts. As a result, the banks decided to purchase treasuries and earn an income to continue operations, but as interest rates continue to rise the price of these securitie

My oh my! Sea Limited (SE) had a remarkable earning beats for Q4 2022, exceeding earnings expectations due to significant cost-cutting measures. The management team made swift and decisive decisions to improve profitability, which ultimately paid off. Let's take a look Drastic cost cutting measures One of the most notable actions taken was the CEO and top management team forgoing their salaries until the company turns profitable. While it may have been a small expense savings it sent a powerful message of the management team's commitment to the company's success. Another significant move was the various rounds of job cuts, reducing Sea Limited's workforce by about 10%. The company is also seeking a replacement tenant for its massive 200,000 sq ft leased space, which will help tri

First to understand the reasons behind Warren Buffet latest move to exit most of his stake in TSMC, having only started a position in Q3 of 2022, we probably have to approach TSMC accordance to Warren Buffet's investment style. His decision to invest in a company can be broadly based on the few points below -Company is undervalued based on it's intrinsic value -Durable moat -Not swayed by short-term market, willing to invest long term - Focus on management  - Margin of safety Company is undervalued based on it's intrinsic value The go to calculation of intrinsic value is using discounted cash flow model which at present values TSMC around $100-$120 range. Clearly, the company is undervalued based on it's current share price of $90 and even more so when it was estimated that Warren Bu

My oh my! What a start for the stock market in 2023! I am sure many of you can sense uphoria in the air but it is wise to give ourselves a reality check time to time. Let's take a look and ask ourselves if we are really out of the woods? The emperor has no clothes The price of TLT is generally inversely correlated with changes in interest rates. When interest rates rise, the value of existing bonds falls because investors can purchase new bonds with higher yields. This leads to a decrease in the value of TLT. At such low levels, it is signaling the likelihood of further rates increase.  Next we look at the strength of the dollar, a rising dollar generally puts pressure on the stock market. It indicates that investors are becoming more risk-averse and seeking s

Not too long ago, we have seen a surge in popularity of three buzzworthy technologies. They are Non-Fungible Tokens (NFTs), the Metaverse, and most recently, ChatGPT or Conversational Artificial Intelligence. While these technologies may seem vastly different on the surface, they all share some common traits in terms of their rise to prominence but stocks that are tied to NFTs and Metaverse have since see their prices fallen substantially along with their popularity.  Let's briefly look into them and ask ourselves if the recent rise of the popularity of AI stocks will eventually fade as well The rise and fall of NFTs The NFT market exploded in popularity over a relatively short period of time, with many artists, collectors, and investors jumping on t

It has been a good start to 2023 for the stock market, with the S&P 500 and Nasdaq up 8.9% and 16.6% respectively. The price movement seems to indicate that we have won the fight against inflation and have a high chance of avoiding a recession. Is it really this time is different? Let's take a look.  10-2 yield curve remains inverted by the most since the 1980s When the 10-2 yield curve inverts, it signals that investors expect the economy to slow down or enter into a recession. Which leads to a decrease in demand for long-term bonds and an increase in demand for short-term bonds, causing yields on long-term bonds to decrease and short term bonds to increase  This is considered a strong indicator of an upcoming recession, as it suggests that investors have become pe

Pick up that book!  In the current internet world, we are fed with tons and tons of information everday at a high pace putting unnecessary pressure on the brain to digest all these information Reading a physical book is actually a very relaxing activity, it gives us a new perspective of a subject and the author usually goes much deeper on a single topic. This activity relief pressure on the brain and are more easy going on the eyes  The Psychology of Money by Morgan Housel Since this is a investing community I would like to recommend a book about investing, The Psychology of Money by Morgan Housel There is a saying "An investor's greatest enemy is not the stock market but his own emotions"  This book

Bollinger Bands Bollinger Bands are quite a popular technical analysis indicator that is use to measure market volatility. The bands consist of a moving average using 20 days and two standard deviation lines plotted away from the moving average. The upper band represents overbought territory, while the lower band represents oversold territory. How to use Bollinger Bands to buy and sell stocks  When the market is volatile, the bands will expand, indicating that prices are moving rapidly. When the market is less volatile, the bands will contract, indicating that prices are moving less rapidly.  One strategy is to buy when the price touches the lower band(purple) and bands starts to contract and sell when it touches the upper band(yellow) and bands starts to contract. Anot

Probably the most edgy earning call for a very long time. Wall Street is expecting EPS of $1.15 and a revenue of $24.24 billion More questions than answers The recent run from $100 to $140 is great news for Tesla shareholders but it will be short lived if many issues that surfaced recently or issues that exist for sometime remain unanswered or is given an unsatisfactory answer. Questions I hope can be given a satisfactory answer in this earning calls would be What is the timeline for cybertruck production, specification and pricing.  We have been teased for many years on the release Tesla Cybertruck only to have it delayed on multiple times. 2023 looks set to be the year we can get our hands on Cybertruck although no specific date is announced yet. With the release

Happy year of the rabbit! 🐰🐰May everyone hop into the year with a big bang of abundance wealth! Huat ah! $Tesla Motors(TSLA)$