To The Moon

Brief info on Aug29th

1. Powell is not professional.

A famous Johns Hopkins University Economy professor, Steve Hanke, argued that Feds Chairman, Jerome Powell, does not fully grasp the causes of the current inflation and predicted that a high rate of price increases will likely carry over into 2024.

In his opinion, the substantial stimulus poured into the economy during the pandemic has fueled the current upswing in inflation.

This is not the first time that Feds' chairman Jerome Powell was criticized unprofessional. Jay was a famous lawyer in his early age, neither in economy nor finance major. Thus, his leading of Feds towards the inflation could have been more advanced.

Powell said he's aiming to avoid the lengthy period of "very restrictive monetary policy" that was needed to tame inflation in the early 1980s. "We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply, and to keep inflation expectations anchored. We will keep at it until we are confident the job is done," he concluded.

I means the marketing is and will be suffering in a uncertained short time.

Still keeping bear, hedge tools are favored.

2. Pinduoduo, A Chinese e-commerce platform save Nasdaq?

Chinese e-commerce platform $Pinduoduo Inc.(PDD)$ surged 14%  on Monday after upbeat reaction to its second-quarter results. Its Non-GAAP EPS of $1.13 beats by $0.72, and revenue of $4.7B, beats consensus of $3.44B.

It was commonly believed Covid-related shutdowns in parts of China earlier this year has cause the slowdown. However, the "recovery in consumer sentiment" was especially noticeable during China's 618 shopping festival.

PDD has been the strongest among$Alibaba(BABA)$ $JD.com(JD)$ and even $KUAISHOU-W(01024)$ whose e-commerce surge during the quarters this year.

Buy the strong ($Pinduoduo Inc.(PDD)$ ), and Sell the weak$Alibaba(BABA)$ , A safer hedging strategy.