Consequences of Index Fund and ETF Regulations and Restrictions

The original intention of the Index Fund and ETF Regulations and Restrictions is to limit the concentration of holdings, but the result is that the trends of market indexes and ETFs are almost linked to these few large-capitalization stocks. As long as these few large-capitalization stocks surge or plummet, these automated programmed transactions will be triggered, and huge amounts of buying and selling will occur simultaneously.

Supermicro, a repeat offender of scandals, valuation is not justified and unsustanable, no worth for long-term holding

Supermicro has absolutely no autonomy in its business, no moat, ultra-low profit margins, and has been involved in negative scandals “repeatedly”. Competitors are too powerful—it is not recommended to hold it.

How is banking investment different from other industries?

No one would expect bank stocks to rise sharply. Most of the time, the performance of bank stocks will underperform the market. The reason is simple. There are only two kinds of people who will buy bank stocks.

error: Content is protected !!