The markets started off lower this week, which is common for September. Both the Nasdaq and NYSE, big parts of the stock market, recovered a bit and almost broke even. But, a lot of stocks did poorly. The number of stocks hitting their lowest price in a year grew to 109, which shows that the market might be weakening.
When a healthy market has a short dip, it usually doesn't see this many stocks dropping to their lowest. This means our current market might be running...

1. Buy only net cash companies
The debt ratio of most companies will increase as needed for development, so they must repay more interest. Once future earnings are not as good as expected, the company must be under greater pressure to repay debts. The recent Evergrande and Country Garden incidents are a typical example
Companies with healthy cash flow will develop their business relatively smoothly, even in the face of some sudden events, such as the COVID-19 pandemic causing the business to shut down. As long as you have a sufficient cash ratio, you can greatly reduce the risk of debt default and return to the pace of recovery more quickly
2. Buy only reasonable valuations
The company's valuation is an expectation given by the market. For example, for glove stocks in 2020, demand surged due to the outbreak of the epidemic, market capital began to shift to the glove sector, and they were willing to buy related companies at a higher valuation level. As a result, stock prices quickly doubled several times, yet investors sought after in the later stages had ignored the suspicion that they were “overvalued”
Valuation is directly proportional to performance. The higher valuation expectations are given, the better performance will have to be handed over in the future, and once the stock price is overturned, it will be “greatly discounted.” Before entering any company, we must review the performance of the past few years, exclude one-time or short-term sources of revenue, and observe the valuation levels of other peers at the same time, so we can get an idea of whether the current valuation is in line with performance expectations and reduce our misjudgments about valuation
3. Use only “spare money” to invest
There is a famous saying from retail investors: I'd rather “break in and out” in the stock market than stay “old in the middle of nowhere”, even if it's too much...

The U.S. Department of the Treasury has shared Treasury International Capital Data for July. Here are the main takeaways:
1. Foreign Investments: The U.S. saw a total investment inflow of $140.6 billion from foreign entities. Such an inflow shows a positive sentiment among foreign investors towards the U.S. market, suggesting they see the U.S. as a stable or profitable place to park their money. Breaking it down:
- Private foreign investors br...

Despite a decent recovery from their lowest points today, all the major stock groups ended up lower. With an important meeting from the Federal Reserve (FED) tomorrow, everyone's a bit nervous about stocks.
Putting aside the big news, our market is currently unpredictable and challenging. It's making both hopeful buyers (bulls) and pessimistic sellers (bears) unsure and tired, making it hard for them to benefit when things do change. It's like a sports player knowin...

On Biztech Asia TV yesterday… I spoke about the EV investing opportunity being untapped. We need to remember that, we are just at the tip of the iceberg and the EV industry still has a long way to go. This is why it remains an attractive investing opportunity;
.- The EV industry still remains one of the most attractive opportunities of this decade; especially as EV penetration is just 10% in Australia, 2% in India, and 3% in Indones...