The predominant company in the vital semiconductor sector, TSMC, has published its third quarter results. Its business performance would give us a clue to the state of the global economy.
However, the results were lackluster. TSMC reported an 11% decrease in revenue and a 25% drop in profits (measured in $NT) compared to the previous year.
News reports have even called this situation TSMC's most significant profit decline in half a decade, an...

For the past few weeks, the financial markets have been quite unsettling to observe, with growing discussions regarding a potential impending crash.
The primary concern at present revolves around the rising long-term yields of US Government bonds. The bigger question is: What is causing this rise in yields? This analysis is crucial in determining whether we are witnessing a necessary market adjustment or the onset of a crash.
There are a ha...

The US Government is currently actively pursuing legal action against not just one, but two major players in the Big Tech industry.
Following its lawsuit against Alphabet, the FTC, in collaboration with 17 states, has initiated legal proceedings against Amazon, citing anti-trust concerns.
Here are some of the allegations leveled against Amazon:
Undercutting the prices of other sellers with its own products.
Penalizing sellers who offer lower prices by releg...

Selling covered calls presents an enticing opportunity to enhance your income stream from your stock holdings.
To illustrate, if you possess Apple shares and believe that a suitable selling price for them is $200, you may opt to sell call options with a strike price of $200. Should the stock price indeed surpass $200, the options may be exercised, resulting in the sale of your Apple shares and realizing your profits.
However, if the price remains below $200...

The Federal Reserve chose not to increase interest rates during the latest FOMC meeting, yet the stock market experienced a decline. Some investors might be wondering why, considering that this should be a piece of positive news.
We must remember that the market is forward-looking and would price its expectations accordingly, often before the event happens.
In this particular instance, the market was not reacting to the current FOMC decision but was i...

The lingering apprehension about interest rate hikes never entirely go away.
Recently the concerns of a rate hike have escalated, as indicated by the movements in financial markets.
Firstly, long-term bond yields have continued their upward trajectory. The yield on the US 10-year bond has climbed from 4.267% to 4.289%, while the 2-year Treasury yield has surged past 5%, reaching 5.022%. This reflects an expectation that interest rates will remain elevated for a...

We often hear the stock investing advice of 'buy and hold' as though it is a panacea for all investing problems. Such advice also premised on the assumption that 'stocks go up in the long run'.
This can lead investors to mistakenly believe that merely holding onto a stock for an extended period guarantees profitability.
However, this is dangerous advice because there are stocks that don't go up in the long run and may caused losses and missed opport...

Two weeks ago I talked about the stock market was undergoing a correction. I said it's not a big crash, just a correction, and I expected it to keep going down for another month by about 10%.
But now, in the last few days, markets have showed some strength and this has led me to wonder if the correction is done.
The S&P 500 has rebounded by 2% in the past 5 days.
Likewise, the tech sector, represented by the QQQ, has gained 3%.
The fear gauge indicator known a...

Companies are expected to experience increased interest expenses as interest rates rise. However, this doesn't apply universally.
There were companies who took on long-term debts when interest rates were low and currently don't require refinancing. Additionally, some of these companies held substantial cash reserves that benefitted from high interest rates, resulting in the generation of millions of dollars in interest income!
Bloomberg ran a piece on this, hi...

The AI fever has not subsided and it is translating to real dollars for Nvidia.
The eagerly awaited results of Nvidia has finally been announced and the results were truly exceptional.
Nvidia recorded a revenue of $13.51 billion, marking a 101% increase compared to the previous year. The net profit experienced an even more dramatic surge, skyrocketing to $6.19 billion from $656 million in the previous year, reflecting an astounding 85...