AYA Analytica financial health memo April 2018
As of April 2018, this regular podcast is available on our Andy Yeh Alpha fintech network platform.
Warren Buffett shares his fresh economic insights and value investment strategies at the Berkshire Hathaway shareholder forum.
Warren Buffett shares his fresh economic insights and value investment strategies at the Berkshire Hathaway shareholder forum in May 2018 despite the new GAAP accounting rule that has led to a $1.14 billion net loss for the Buffett-Munger stock portfolio.
Berkshire reports a $1.14 billion net loss in 2018Q1 or its first net loss since 2009 primarily due to an esoteric GAAP accounting rule that Buffett considers a nightmare.
The firm also reports an operating profit of 48.7% year-over-year.
The new rule suggests that the net change in fair-value investment gains and losses must be shown in all net income figures.
This requirement produces some wild and capricious gyrations in the GAAP bottom-line.
Berkshire owns $170 billion tradable stocks, and the market values of these stock positions can easily fluctuate by $10 billion or more within each quarter.
Including gyrations of such magnitude in net income swamps the more important numbers that better describe Berkshire Hathaway's true operating performance.
Buffett thus pierces the GAAP veil for Berkshire investors to better assess the fundamental intrinsic value of each stock position.
Buffett continues his active interest in small-to-mid-cap profitable value stocks that invest conservatively in both capital equipment and balance sheet expansion.
Commerce Secretary Wilbur Ross suggests that 5G remains a U.S. top technology priority in light of the Sprint-T-Mobile telecom merger.
Commerce Secretary Wilbur Ross suggests that 5G is a U.S. top technology priority in light of the telecom merger plan between Sprint and T-Mobile and President Trump's recent ban on the Broadcom-Qualcomm merger.
Ross highlights the strategic importance of 5G wireless communication as part of the national economic security agenda.
The recent telecom merger between T-Mobile and Sprint can help propel AT&T and Verizon into more active pursuit of 5G
This $26.5 billion all-stock merger caps 4 years of on-and-off talks between the next largest U.S. wireless carriers behind AT&T and Verizon.
U.S. regulatory agencies are likely to grill these firms on how they plan to price wireless service packages.
Both wireless carriers expect to invest at least $40 billion over the next 3 years to upgrade their wireless networks to accommodate 5G.
The joint company would encompass about 120 million subscribers within the current wireless networks of T-Mobile and Sprint.
Network effects and externalities can spill over to benefit the next marginal consumers who can then enjoy the fruits of healthy competition between T-Mobil-Sprint and AT&T and Verizon.
The Federal Communications Commission plans new auctions of high broadband spectrum to speed up the launch of next-generation 5G networks.
Sprint and T-Mobile propose a major merger in order to better compete with AT&T and Verizon.
Sprint and T-Mobile initiate a major merger plan in order to better compete with AT&T and Verizon.
This mega merger is worth $26.5 billion and involves an all-stock deal that exchanges 9.75 Sprint shares for each T-Mobile share.
The joint company retains the T-Mobile name, keeps its CEO John Legere, and encompasses about 120 million subscribers.
This mega merger carries about $146 billion enterprise valuation with debt in comparison to $313 billion Verizon enterprise value and $334 billion AT&T enterprise value.
The latter telecom titans invest in substantial fiber-optic, wireless telecom, telephone, can cable television operations.
Joining forces would allow the company to build out a 5G wireless network in direct competition with AT&T and Verizon.
This new merger clears the cloudy practices that may harm consumer benefits in the previous M&A attempt back in 2014.
T-Mobile and Sprint suggest that times have changed a great deal since 2014 because several companies such as Comcast now enter the mobile business.
Also, the White House advocates that 5G wireless networks are crucial for national economic security reasons.
Many stock analysts now consider this mega merger to take place with a 50%+ chance of regulatory approval.
What are the primary pros and cons of free trade or fair trade in the current Sino-American quagmire?
What are the primary pros and cons of free trade in the current Sino-American quagmire?
Free trade means allowing goods and services to move as freely as possible across different countries.
As countries develop over time, they start swapping goods and services across national borders.
As transport improves in speed and quality, these countries can start buying and selling goods and services abroad.
When governments struggle to raise domestic taxes, it is easier to implement the fair trade policy of levying heavy duties on foreign imports.
Most economists eventually gain the upper hand because keeping these trade barriers as low as possible proves to be a sensible economic policy.
In accordance with the law of comparative advantage, free trade allows countries and corporations to specialize in intermediate production, service provision, or new tech innovation.
Also, free trade expands the size of the economic pie and thus shifts scare resources from the less productive firms to the productive ones.
However, not everyone becomes better off.
Some receive a smaller slice of the pie because product market concentration and dominance can exacerbate economic inequality.
Moreover, free trade helps enhance the political discourse of peace and cooperation.
It is important for the government to improve affordable residential real estate and labor mobility in order to counterbalance the exogenous shocks from fair trade barriers.
America and China play the game of chicken over trade and technology.
America and China play the game of chicken over trade and technology, whereas, most market observers and economic media commentators expect the Trump team to help avert a long and open Sino-U.S. trade war.
The current Sino-American trade war may erect trade barriers such as tariffs, quotas, and even embargoes on both sides at the expense of global citizens who would then face higher costs and prices.
In recent times, America imposes tariffs on $60 billion Chinese imports in addition to its steel and aluminum tariffs on western allies such as Canada, Europe, and Mexico.
National Economic Council chief adviser and former CNBC economic media host Larry Kudlow expresses cautious optimism toward the next trade negotiations with the Chinese delegation.
The Trump administration also initiates an executive order to bar U.S. government agencies to buy 5G products and services from Chinese telecom equipment providers such as HuaWei and ZTE.
This executive order further restricts private government contractors from buying foreign telecom products and services in relation to 5G national economic security concerns.
These restrictions help deter unforeseen contingencies that might arise from Chinese espionage and disruption.
Education offers a hefty 8.8% pay premium for each marginal increase in the number of years of intellectual attainment in stark contrast to the 5.6%-6% long-run average U.S. equity premium.
World Bank senior economists George Psacharopoulos and Harry Patrinos examine 1,120 studies across 139 countries to come up with an annual average rate of return on each marginal increase in the typical level of educational attainment.
This 8.8% pay premium exceeds the U.S. stock market return about 5.6%-6% per annum over the past 50 years.
In fact, this wage premium excludes social gains such as more positive social interactions and lower mortality rates in close association with better education.
Also, the premium is higher for girls and college graduates (in comparison to postgraduates).
This pay premium is higher in low-income countries primarily because these countries recruit a smaller share of global citizens with higher education.
In accordance with the law of lower marginal value, this pay premium dwindles for each extra year of educational attainment.
Psacharopoulos and Patrinos posit a current race between education and technology.
This race suggests that technological advances accelerate to favor high-skill workers to the detriment of low-skill workers.
The key implication for public policy is that the government should subsidize tertiary education or even graduate school attendance.
This subsidization serves as a worthy socioeconomic investment in human capital.
Credit supply expansions drive business cycle fluctuations and often sow the seeds of their own subsequent destruction.
The global financial crisis from 2008 to 2009 suggests that we can predict a major slowdown in real economic activity by tracking incremental household debt accumulation.
In America and 30+ other countries, changes in household debt-to-GDP ratios between 2002 and 2007 correlate significantly with increases in unemployment from 2007 to 2010.
From this empirical perspective, credit supply expansions, rather than permanent income or technology shocks, serve as a major driver of real business cycles over time.
Most models attribute macroeconomic fluctuations to real factors such as exogenous productivity shocks.
In contrast, financial intermediaries can play a pivotal role in credit supply growth, household leverage, employment, and asset valuation.
Credit supply expansions affect the real macroeconomy by boosting household demand, rather than the productive capacity of firms.
In fact, credit booms tend to precede higher inflation and employment in retail and construction (but not in the tradable or export-driven business sector).
The economy slowly adjusts to the precipitous decline in consumer expenditures due to high household leverage when credit supply slows down in most major financial crises.
Even when short-term interest rates fall to zero, savers cannot spend enough to make up for the shortfall in aggregate demand.
Also, employment cannot readily gravitate from the non-tradable sector to the tradable sector.
Moreover, nominal rigidities, sluggish price adjustments, financial sector disruptions, and legacy distortions render post-credit-boom recessions more severe.
What triggers credit supply growth involves a key influx of capital in the financial system.
In this light, both monetary and fiscal stimulus can have a major impact on the real economy via credit supply growth, household debt, stock and bond prices, and real business cycles.
Overall, financial stability serves as a key precondition for better bond and stock valuation.
Harvard professor and former IMF chief economist Kenneth Rogoff advocates that artificial intelligence helps augment human productivity growth in the next decade.
A small but influential cult touts the Hungarian-American mathematician John von Neumann's singularity theory: someday smart machines will become so complex and intricate that they can invent other smart machines without any human intervention.
Beyond this singularity point, technology advances exponentially.
An existential battle between man and machine leads us to expect a significant increase in productivity growth.
Most social angst over artificial intelligence primarily focuses on economic inequality and the future of work.
The government should encourage greater female labor force participation, pay equity, and high-skill immigration when workforce growth and natural birth decline sharply.
Also, global capital investment slows down in the multi-year aftermath of the global financial crisis from 2008 to 2009.
Low interest rates worldwide help reinvigorate business investments in capital equipment, machinery, and artificial intelligence.
The probable pickup in productivity growth can arise from smart and productive uses of artificial intelligence.
This pickup can be a core catalyst for change and thus creates incentives for firms and financial intermediaries to introduce technological advances.
This virtuous circle offsets some slowdown in workforce participation.
Allianz chief economic adviser Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus.
The latter dominates the old school of economic thought prior to the Trump administration.
Most countries would benefit from embracing domestic deregulation and free trade and open cross-border capitalism.
When the Washington consensus turns into blind faith, however, America suffers the major discontents of financial globalization such as subprime mortgage risks in the global financial crisis from 2008 to 2009.
Unemployment surges to unforeseen double digits, capital investment wanes, real productivity protracts, and U.S. residents reap lower real disposable income.
Secular stagnation arises from the worst-case scenario where the central bank hits the zero lower bound on interest rates to accommodate labor-market deficiencies, whereas, higher prices become inadvertent seigniorage taxes.
Political polarization further deepens economic income and wealth inequality.
With socioeconomic advantages such as elite education and political clout, the rich become richer because most of their income and wealth would result from cash dividends and capital gains.
El-Erian thus proposes his new consensus on fair trade, artificial intelligence, big data, and greater labor mobility.
This new consensus better adapts to the current tech titan dominance in both labor and capital markets.
Value investment strategies make investors wiser like water with better fundamental factor analysis.
Value investors buy stocks below their intrinsic values and then wait for them to rebound to fair values.
This old-school investment philosophy resonates with the buy-low-sell-high mantra of dynamic asset management.
However, the Russell 1000 Value index trails the Russell Growth index by 130% in the 9.5-year bull market from late-2008 to mid-2018.
Also, the former lags the S%P 500 market benchmark by more than 50%.
Stock market valuation blows most conventional benchmarks, and the recent mega-cap tech juggernauts drive most of this outperformance.
These tech titans include Facebook, Apple, Microsoft, Google, Amazon, Netflix, and Twitter (FAMGANT).
Recent quantitative value investment strategies have quietly transformed into smart-beta factor strategies.
The latter entail attributing the broad variation in total asset returns to several fundamental factors such as size, value, momentum, profitability, asset growth, and market risk exposure.
Subtracting multi-beta risk premiums from total returns yields alpha estimates or average excess returns after the econometrician controls for multiple fundamental factors in the smart-beta value investment strategies.
On this primary basis of fundamental risk adjustment, value stocks earn higher alphas or average excess returns than the glamor stock counterparts.
Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea.
Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea with no regime change as North Korean dictator Kim Jong-Un intends to end the 65-year Korean War.
Major U.S. and East Asian stock markets experience healthy gains in response to this positive result.
Pompeo is now the most senior U.S. diplomat who directly meets and approaches Kim.
This secret visit signals the fact that President Trump sends goodwill to the North Korean leader prior to their bilateral peace summit.
The recent dialogue between Kim and Pompeo upholds the genuine belief that President Trump can engage in productive negotiations with North Korea over its intercontinental ballistic missile programs.
Trump-Kim direct talks help strengthen the plausible case for peace and denuclearization on the Korean peninsula in the next decade.
Pompeo remains optimistic about a Trump-Kim peace summit during his Senate confirmation testimony for his post of State Secretary.
At this stage, Pompeo expects the peace summit to take place for a positive diplomatic outcome with North Korea.
This summit serves as an incremental step toward Korean denuclearization, and the current dialogue helps alleviate the current nuclear threat from North Korea.
The Trump administration plans to continue the current U.N.-driven economic sanctions on North Korea until its complete and comprehensive denuclearization.
North Korean leader and president Kim Jong-Un seeks peaceful resolution and denuclearization on the Korean Peninsula.
North Korean leader and president Kim Jong-Un seeks peaceful resolution and denuclearization on the Korean Peninsula.
When peace comes to shove, many Asian stock markets reap sharp gains as a result.
As of late-April 2018, Kim crosses the border into the south side of the Korean-demilitarized-zone (KDZ) in a historic embrace with South Korean President Moon Jae-In.
Kim and Moon issue a joint statement that expresses their intention to establish a peace treaty as the formal end of the 65-year Korean War.
They vow to re-unite both sides of the Korean peninsula for greater economic prosperity, sustainable peace, and regional safety.
Both sides now work toward ridding the peninsula of nuclear weapons, and the KDZ border area becomes a peace zone that helps enrich the economic lives of Korean civilians.
U.S. President Trump expects to shake hands with North Korean leader and president Kim Jong-Un in their inaugural peace summit around mid-June 2018.
As North Korea and America have yet to determine the exact time and place for the Trump-Kim peace summit, several media commentators speculate the summit to take place in Singapore, which has historically been a neutral high-income country that respects both diverse ethnic cultures and economic differences worldwide.
Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage.
Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage in response to the Cambridge Analytica data debacle and user privacy breach of trust.
His lengthy congressional delivery before U.S. Senate seems wooden and stiff and sticks closely to his talking points without any major mistakes.
It is clear from the outset that many of the senators are quite tech-illiterate, and the 33-year-old CEO has to explain several basic features of his social network platform.
These basic features include Facebook advertisements, small-to-medium business pages, target audience segments, user data distributions, privacy rules, and service terms and conditions etc.
Zuckerberg reiterates his apologies for Russian interference in the November 2016 U.S. presidential election, Cambridge Analytica data debacle, and new government regulation of social media firms such as Facebook and Twitter.
His answers to some of the tougher questions are less satisfactory, but Zuck never attempts to push back to fill the silence.
For instance, one senator asks Zuck whether he would identify Twitter as its primary competitor.
Zuck deflects the question to focus on the massive size of Facebook as an online social community in direct comparison to some other platform orchestrators such as Apple, Amazon, Google, and Microsoft.
The Cambridge Analytica data debacle affects more than 50 million Facebook users, and several stock analysts and economic media commentators discuss the post-Cambridge crisis for Facebook.
Facebook faces fewer active users per month, and the average costs of Facebook advertisements inevitably surge as the target audience segments become less accurate.
As active usage and social engagement both decline over time, Facebook has to deal with lower sales revenue and bottomline because some business pages may further constrain their ad budgets on Facebook.
The probable increase in Facebook ad expenditures can be highly detrimental to both business and non-commercial organizations that continue to maintain their online presence.
New government regulation may entail subjecting Facebook and Twitter to the same media standards for publishers.
Alternatively, new government regulation may stipulate that Facebook has to break into smaller subsidiaries in direct comparison to the antitrust treatment of Microsoft and Google.
Overall, the current crisis can deter Facebook from tapping into the uncharted territory of both ecommerce and entertainment industries.
CNBC news anchor Becky Quick interviews Warren Buffett in light of the recent stock market gyrations and movements.
CNBC news anchor Becky Quick interviews Warren Buffett in light of the recent stock market gyrations and movements.
Warren Buffett views stocks as small pieces of business enterprises.
He tends to buy large equity stakes of public enterprises with low relative market valuation that manifests in the form of low P/B and P/E ratios (below 1.2x and 9x respectively).
It would be idiotic to just look at the share price when the investor places his or her equity stakes in public companies.
Although some investors and fund managers emphasize a healthy balance between stock and bond portfolio allocation, Buffett focuses on the higher 12% annual long-term average return on stocks in stark contrast to a meager 3%-4% counterpart for bonds.
Given the recent oil price surge, Dodd-Frank rollback, and non-nuclear peace summit between North Korea and America, the current stock and bond market healthy fundamental recalibration offers lucrative investment opportunities.
Warren Buffett shares his key principles for achieving success in life.
First, we should keep a long-term perspective to invest in our own education and social integration for greater wealth, happiness, and fulfillment.
Second, we need to stay humble enough to learn new tricks, concepts, and virtues to build up our own wisdom.
Third, we can invest in bluechip stocks with extra cash and no debt to earn compound interest over time.
These stocks tend to be small profitable cash cows with low relative market valuation that invest conservatively in both capital investment and balance sheet expansion.
In fact, we should learn to live within or even below our means for sound and sustainable wealth creation.
We can be better off owning a small number of well-made and reliable possessions than a large number of possessions that we seldom use in practice.
We should consciously invest adequate time and energy into every part of our lives with minimal destructive spending urges.
China President Xi tries to ease trade tension between America and China in his Boao presidential address.
China President Xi JinPing seeks to ease trade tension between America and China in his presidential address at the annual Boao forum.
In his vulnerable attempt to avert the Sino-U.S. trade war, President Xi announces multiple plans to open China.
These plans include curtailing tariffs on automobile imports, enforcing the legal protection of intellectual properties of foreign companies, and filing formal complaints against the Trump tariffs on steel and aluminum.
However, several sources suggest that it is unlikely for China to completely retreat from the international free trade system.
Should the Trump administration insist on imposing punitive tariffs on Chinese imports, China can follow suit to counterbalance this strategic act with retaliatory tariffs.
In effect, this rare game of chicken weakens the bilateral trade negotiations between China and America.
President Xi's speech strikes a positive tone and serves as a reconciliatory gesture toward the Trump administration.
Chinese doves aim to assuage the cold war mentality of Trump hawks, whereas, the Trump administration can threaten China with additional tariffs.
The Sino-U.S. trade relations may become the Thucydides trap that significant shifts in relative strength of major powers can be a primary cause of bilateral conflict.
Tech stock prices tumble due to Trump's criticism of Amazon's tax avoidance, Facebook data breach of trust, and Tesla autopilot incidence.
Share prices tumble for technology stocks due to Trump's criticism of Amazon's tax avoidance, Facebook user data breach of trust, and Tesla autopilot incidence.
President Trump accuses Amazon of unfairly deferring tax payments via its European operational hub in Luxemburg.
This common cross-border corporate scheme can be legitimate, but this scheme rings the alarm bell for the American, British, and other governments in light of borderline tax avoidance.
Also, President Trump complains that U.S. Postal Service cannot make money because it fails to charge higher delivery prices on the single ecommerce giant Amazon.
Meanwhile, Facebook faces the Cambridge Analytica user data debacle, and U.S. senators are likely to grill Zuckerberg in his congressional testimony.
Both these recent Amazon and Facebook crises trigger sharp share price declines among the top tech titans Facebook, Apple, Microsoft, Google, Amazon, Netflix, and Twitter (FAMGANT).
Moreover, Tesla experiences an autopilot incidence in March 2018 where an autonomous car crashes into a nearby barrier before the driver turns off the artificial intelligence software to correct the car path.
This Tesla autopilot car crash aggravates the recent woes of Uber's recent autonomous car accident.
Some tech stocks exhibit double-digits declines due to the recent crises.
CNBC's business anchorwoman Becky Quick interviews Nobel Laureate Joseph Stiglitz on the current Sino-U.S. trade war.
CNBC's business news anchor Becky Quick interviews Nobel Laureate Joseph Stiglitz on the current trade war between America and China.
When America imposes $60 billion tariffs on key Chinese imports such as steel and aluminum, China fights back with $3 billion tariffs on U.S. exports for at least 128 items.
Stiglitz points out that the poor and less economically-privileged Americans with subpar socioeconomic status and educational attainment are likely to suffer due to higher prices of many consumption goods.
Also, most U.S. corporations finance their capital investments with tax-deductible debt, and so tax cuts will largely benefit these large corporations and high net-worth investors in America.
However, the typical U.S. household will face lower purchasing power, and fiscal stimulus may or may not boost real investment and productivity growth.
For this reason, President Trump's economic policy reform may wreak havoc in real macroeconomic activities, especially if GDP per capita growth cannot exceed investor expectations and inflationary pressures in the medium term.
Stiglitz specifically favors globalization and free trade if the U.S. government sets clear limits on product market liberalization.
President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war.
President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war as China hits back with retaliatory tariffs on $3 billion U.S. exports.
This strategic move hits China for its unfair trade practices with at least 3 major jabs.
First, the Trump tariffs take the form of 25% duties on $60 billion Chinese exports to America.
This first jab is only a fraction of the economic damage that China has done to America by forcibly extracting the intellectual properties of U.S. corporations.
Second, the Trump administration can introduce foreign investment restrictions on Chinese companies.
This prevention can stop Chinese companies from swooping into U.S. competitive advantages.
Third, the Trump administration considers litigation at the World Trade Organization (WTO).
Since the inception of its WTO membership, China has indeed failed to transform into an open democratic society that respects both economic freedom and the rule of law.
Overall, the Trump tariffs signal the dawn of an inevitable Sino-American trade war.
Trump uses the sequential tariff tactics and economic sanctions on China, Iran, and Russia and even some western allies such as Canada, Europe, and Mexico.
These tactical solutions may help dramatically reduce U.S. trade and budget deficits.
Personal finance and investment author Thomas Corley studies and shares the rich habits of self-made millionaires.
Thomas Corley studies and shares the rich habits of numerous self-made millionaires.
Corley has spent 5 years studying the daily habits and routines of self-made millionaires, and then he chronicles these results in his books *Rich Habits* and *Change You Habits, Change Your Life*.
Rich people share common habits, and others can learn from these habits that help enrich their lives.
First, self-made millionaires maintain long-term vision with short-term focus.
They often set bold and lofty life goals, value propositions, and mission statements.
At the same time, the rich focus on both the important and urgent matters that can often lead to positive results.
For instance, these millionaires attend to money matters like value investors who focus on small profitable cash cows with low relative market valuation that invest conservatively in both capital investment and balance sheet expansion.
Second, self-made millionaires cherish and emphasize the importance of self-improvement.
They read books, articles, blogs, and newsletters etc about personal finance, management, and other self-help issues.
This practice allows self-made millionaires to turn unproductive routines into better ones.
Third, self-made millionaires enhance their social integration.
These millionaires like to network with successful people in personal finance, sport, family, or other social events, and their active social engagement extends beyond their inner circle.
In Corley's 5-year study, what self-made millionaires choose not to accomplish is as important as what they choose to accomplish over several years.
Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut press conference.
Fed Chair Jerome Powell raises the neutral interest rate to a range of 1.5% to 1.75% in his debut post-FOMC press conference.
The Federal Reserve raises the interest rate for the sixth time since the Federal Open Market Committee (FOMC) near-zero rate lift-off in December 2015.
In fact, the Fed Chair transition from Yellen to Powell indicates a moderate monetary policy stance from dovish to hawkish in accordance with the recent FOMC minutes.
The Federal Reserve now targets a core PCE inflation rate above 2.1% as the U.S. unemployment rate gradually declines to the lowest level of 3.8% to 4.1% in 17 years.
Most dynamic stochastic general equilibrium (DSGE) New Keynesian macro models suggest that Powell needs to trade off near-full employment with inflationary momentum.
As inflation rises over time, Powell must gradually raise the neutral interest rate to tame upward price gyrations when the U.S. economy operates near full employment.
Former Fed Chair Janet Yellen might prefer to keep the lower interest rate for a longer period of time, whereas, Powell departs from this lower-for-longer dovish and accommodative monetary policy stance in response to FOMC hawks who express deep concerns about high inflation or price instability.
Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM)
AYA Analytica is our online regular podcast and newsletter about key financial news, market insights, economic issues, and stock investment strategies on our Andy Yeh Alpha (AYA) fintech network platform. With both American focus and international reach, our primary and ultimate corporate mission aims to help enhance financial literacy, inclusion, and freedom of the open and diverse global general public. We apply our unique dynamic conditional alpha investment model as the first aid for every investor with profitable asset investment signals and portfolio strategies. In fact, our AYA freemium fintech network platform curates, orchestrates, and provides proprietary software technology and algorithmic cloud service to most members who can interact with one another on our AYA fintech network platform. Multiple blogs, posts, ebooks, analytical reports, stock alpha signals, and asset omega estimates offer proprietary solutions and substantive benefits to empower each financial market investor through technology, education, and social integration. Please feel free to sign up or login to enjoy our new and unique cloud software services on AYA fintech network platform now!!
Please feel free to follow our AYA Analytica financial health memo (FHM) podcast channel on YouTube: https://www.youtube.com/channel/UCvntmnacYyCmVyQ-c_qjyyQ
Please feel free to follow our Brass Ring Facebook to learn more about the latest financial news and stock investment ideas: https://www.facebook.com/brassring2013
Free signup for stock signals: https://ayafintech.network
Mission on profitable signals: https://ayafintech.network/mission.php
Model technical descriptions: https://ayafintech.network/model.php
Blog on stock alpha signals: https://ayafintech.network/blog.php
Freemium base pricing plans: https://ayafintech.network/freemium.php
Signup for periodic updates: https://ayafintech.network/signup.php
Login for freemium benefits: https://ayafintech.network/login.php
We create each free finbuzz (or free financial buzz) as a blog post on the latest financial news and asset investment ideas. Our finbuzz collection demonstrates our unique American focus with global reach. Each free finbuzz provides deep insights into numerous topical issues in global finance, stock market investment, portfolio optimization, and dynamic asset management. We strive to help enrich the economic lives of most investors who would otherwise engage in financial data analysis with inordinate time commitment.
Please feel free to forward our finbuzz to family and friends, peers, colleagues, classmates, and others who might be keen and abuzz to learn more about asset investment strategies and modern policy reforms with macroeconomic insights.
Do you find it difficult to beat the long-term average 11% stock market return?
It took us 20+ years to design a new profitable algorithmic asset investment model and its attendant proprietary software technology with fintech patent protection in 2+ years. AYA fintech network platform serves as everyone’s first aid for his or her personal stock investment portfolio. Our proprietary software technology allows each investor to leverage fintech intelligence and information without exorbitant time commitment. Our dynamic conditional alpha analysis boosts the typical win rate from 70% to 90%+.
Our new alpha model empowers members to be a wiser stock market investor with profitable alpha signals!! This proprietary quantitative analysis applies the collective wisdom of Warren Buffett, George Soros, Carl Icahn, Mark Cuban, Tony Robbins, and Nobel Laureates in finance such as Robert Engle, Eugene Fama, Lars Hansen, Robert Lucas, Robert Merton, Edward Prescott, Thomas Sargent, William Sharpe, Robert Shiller, and Christopher Sims.
Andy Yeh Alpha (AYA) fintech network platform serves as each investor's social toolkit for profitable investment management. AYA fintech network platform helps promote better financial literacy, inclusion, and freedom of the global general public. We empower investors through technology, education, and social integration.
Andy Yeh
AYA fintech network platform founder
Brass Ring International Density Enterprise (BRIDE)
Warren Buffett shares his fresh economic insights and value investment strategies at the Berkshire Hathaway shareholder forum.
Warren Buffett shares his fresh economic insights and value investment strategies at the Berkshire Hathaway shareholder forum in May 2018 despite the new GAAP accounting rule that has led to a $1.14 billion net loss for the Buffett-Munger stock portfolio.
Berkshire reports a $1.14 billion net loss in 2018Q1 or its first net loss since 2009 primarily due to an esoteric GAAP accounting rule that Buffett considers a nightmare.
The firm also reports an operating profit of 48.7% year-over-year.
The new rule suggests that the net change in fair-value investment gains and losses must be shown in all net income figures.
This requirement produces some wild and capricious gyrations in the GAAP bottom-line.
Berkshire owns $170 billion tradable stocks, and the market values of these stock positions can easily fluctuate by $10 billion or more within each quarter.
Including gyrations of such magnitude in net income swamps the more important numbers that better describe Berkshire Hathaway's true operating performance.
Buffett thus pierces the GAAP veil for Berkshire investors to better assess the fundamental intrinsic value of each stock position.
Buffett continues his active interest in small-to-mid-cap profitable value stocks that invest conservatively in both capital equipment and balance sheet expansion.
Commerce Secretary Wilbur Ross suggests that 5G remains a U.S. top technology priority in light of the Sprint-T-Mobile telecom merger.
Commerce Secretary Wilbur Ross suggests that 5G is a U.S. top technology priority in light of the telecom merger plan between Sprint and T-Mobile and President Trump's recent ban on the Broadcom-Qualcomm merger.
Ross highlights the strategic importance of 5G wireless communication as part of the national economic security agenda.
The recent telecom merger between T-Mobile and Sprint can help propel AT&T and Verizon into more active pursuit of 5G
This $26.5 billion all-stock merger caps 4 years of on-and-off talks between the next largest U.S. wireless carriers behind AT&T and Verizon.
U.S. regulatory agencies are likely to grill these firms on how they plan to price wireless service packages.
Both wireless carriers expect to invest at least $40 billion over the next 3 years to upgrade their wireless networks to accommodate 5G.
The joint company would encompass about 120 million subscribers within the current wireless networks of T-Mobile and Sprint.
Network effects and externalities can spill over to benefit the next marginal consumers who can then enjoy the fruits of healthy competition between T-Mobil-Sprint and AT&T and Verizon.
The Federal Communications Commission plans new auctions of high broadband spectrum to speed up the launch of next-generation 5G networks.
Sprint and T-Mobile propose a major merger in order to better compete with AT&T and Verizon.
Sprint and T-Mobile initiate a major merger plan in order to better compete with AT&T and Verizon.
This mega merger is worth $26.5 billion and involves an all-stock deal that exchanges 9.75 Sprint shares for each T-Mobile share.
The joint company retains the T-Mobile name, keeps its CEO John Legere, and encompasses about 120 million subscribers.
This mega merger carries about $146 billion enterprise valuation with debt in comparison to $313 billion Verizon enterprise value and $334 billion AT&T enterprise value.
The latter telecom titans invest in substantial fiber-optic, wireless telecom, telephone, can cable television operations.
Joining forces would allow the company to build out a 5G wireless network in direct competition with AT&T and Verizon.
This new merger clears the cloudy practices that may harm consumer benefits in the previous M&A attempt back in 2014.
T-Mobile and Sprint suggest that times have changed a great deal since 2014 because several companies such as Comcast now enter the mobile business.
Also, the White House advocates that 5G wireless networks are crucial for national economic security reasons.
Many stock analysts now consider this mega merger to take place with a 50%+ chance of regulatory approval.
What are the primary pros and cons of free trade or fair trade in the current Sino-American quagmire?
What are the primary pros and cons of free trade in the current Sino-American quagmire?
Free trade means allowing goods and services to move as freely as possible across different countries.
As countries develop over time, they start swapping goods and services across national borders.
As transport improves in speed and quality, these countries can start buying and selling goods and services abroad.
When governments struggle to raise domestic taxes, it is easier to implement the fair trade policy of levying heavy duties on foreign imports.
Most economists eventually gain the upper hand because keeping these trade barriers as low as possible proves to be a sensible economic policy.
In accordance with the law of comparative advantage, free trade allows countries and corporations to specialize in intermediate production, service provision, or new tech innovation.
Also, free trade expands the size of the economic pie and thus shifts scare resources from the less productive firms to the productive ones.
However, not everyone becomes better off.
Some receive a smaller slice of the pie because product market concentration and dominance can exacerbate economic inequality.
Moreover, free trade helps enhance the political discourse of peace and cooperation.
It is important for the government to improve affordable residential real estate and labor mobility in order to counterbalance the exogenous shocks from fair trade barriers.
America and China play the game of chicken over trade and technology.
America and China play the game of chicken over trade and technology, whereas, most market observers and economic media commentators expect the Trump team to help avert a long and open Sino-U.S. trade war.
The current Sino-American trade war may erect trade barriers such as tariffs, quotas, and even embargoes on both sides at the expense of global citizens who would then face higher costs and prices.
In recent times, America imposes tariffs on $60 billion Chinese imports in addition to its steel and aluminum tariffs on western allies such as Canada, Europe, and Mexico.
National Economic Council chief adviser and former CNBC economic media host Larry Kudlow expresses cautious optimism toward the next trade negotiations with the Chinese delegation.
The Trump administration also initiates an executive order to bar U.S. government agencies to buy 5G products and services from Chinese telecom equipment providers such as HuaWei and ZTE.
This executive order further restricts private government contractors from buying foreign telecom products and services in relation to 5G national economic security concerns.
These restrictions help deter unforeseen contingencies that might arise from Chinese espionage and disruption.
Education offers a hefty 8.8% pay premium for each marginal increase in the number of years of intellectual attainment in stark contrast to the 5.6%-6% long-run average U.S. equity premium.
World Bank senior economists George Psacharopoulos and Harry Patrinos examine 1,120 studies across 139 countries to come up with an annual average rate of return on each marginal increase in the typical level of educational attainment.
This 8.8% pay premium exceeds the U.S. stock market return about 5.6%-6% per annum over the past 50 years.
In fact, this wage premium excludes social gains such as more positive social interactions and lower mortality rates in close association with better education.
Also, the premium is higher for girls and college graduates (in comparison to postgraduates).
This pay premium is higher in low-income countries primarily because these countries recruit a smaller share of global citizens with higher education.
In accordance with the law of lower marginal value, this pay premium dwindles for each extra year of educational attainment.
Psacharopoulos and Patrinos posit a current race between education and technology.
This race suggests that technological advances accelerate to favor high-skill workers to the detriment of low-skill workers.
The key implication for public policy is that the government should subsidize tertiary education or even graduate school attendance.
This subsidization serves as a worthy socioeconomic investment in human capital.
Credit supply expansions drive business cycle fluctuations and often sow the seeds of their own subsequent destruction.
The global financial crisis from 2008 to 2009 suggests that we can predict a major slowdown in real economic activity by tracking incremental household debt accumulation.
In America and 30+ other countries, changes in household debt-to-GDP ratios between 2002 and 2007 correlate significantly with increases in unemployment from 2007 to 2010.
From this empirical perspective, credit supply expansions, rather than permanent income or technology shocks, serve as a major driver of real business cycles over time.
Most models attribute macroeconomic fluctuations to real factors such as exogenous productivity shocks.
In contrast, financial intermediaries can play a pivotal role in credit supply growth, household leverage, employment, and asset valuation.
Credit supply expansions affect the real macroeconomy by boosting household demand, rather than the productive capacity of firms.
In fact, credit booms tend to precede higher inflation and employment in retail and construction (but not in the tradable or export-driven business sector).
The economy slowly adjusts to the precipitous decline in consumer expenditures due to high household leverage when credit supply slows down in most major financial crises.
Even when short-term interest rates fall to zero, savers cannot spend enough to make up for the shortfall in aggregate demand.
Also, employment cannot readily gravitate from the non-tradable sector to the tradable sector.
Moreover, nominal rigidities, sluggish price adjustments, financial sector disruptions, and legacy distortions render post-credit-boom recessions more severe.
What triggers credit supply growth involves a key influx of capital in the financial system.
In this light, both monetary and fiscal stimulus can have a major impact on the real economy via credit supply growth, household debt, stock and bond prices, and real business cycles.
Overall, financial stability serves as a key precondition for better bond and stock valuation.
Harvard professor and former IMF chief economist Kenneth Rogoff advocates that artificial intelligence helps augment human productivity growth in the next decade.
A small but influential cult touts the Hungarian-American mathematician John von Neumann's singularity theory: someday smart machines will become so complex and intricate that they can invent other smart machines without any human intervention.
Beyond this singularity point, technology advances exponentially.
An existential battle between man and machine leads us to expect a significant increase in productivity growth.
Most social angst over artificial intelligence primarily focuses on economic inequality and the future of work.
The government should encourage greater female labor force participation, pay equity, and high-skill immigration when workforce growth and natural birth decline sharply.
Also, global capital investment slows down in the multi-year aftermath of the global financial crisis from 2008 to 2009.
Low interest rates worldwide help reinvigorate business investments in capital equipment, machinery, and artificial intelligence.
The probable pickup in productivity growth can arise from smart and productive uses of artificial intelligence.
This pickup can be a core catalyst for change and thus creates incentives for firms and financial intermediaries to introduce technological advances.
This virtuous circle offsets some slowdown in workforce participation.
Allianz chief economic adviser Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus.
The latter dominates the old school of economic thought prior to the Trump administration.
Most countries would benefit from embracing domestic deregulation and free trade and open cross-border capitalism.
When the Washington consensus turns into blind faith, however, America suffers the major discontents of financial globalization such as subprime mortgage risks in the global financial crisis from 2008 to 2009.
Unemployment surges to unforeseen double digits, capital investment wanes, real productivity protracts, and U.S. residents reap lower real disposable income.
Secular stagnation arises from the worst-case scenario where the central bank hits the zero lower bound on interest rates to accommodate labor-market deficiencies, whereas, higher prices become inadvertent seigniorage taxes.
Political polarization further deepens economic income and wealth inequality.
With socioeconomic advantages such as elite education and political clout, the rich become richer because most of their income and wealth would result from cash dividends and capital gains.
El-Erian thus proposes his new consensus on fair trade, artificial intelligence, big data, and greater labor mobility.
This new consensus better adapts to the current tech titan dominance in both labor and capital markets.
Value investment strategies make investors wiser like water with better fundamental factor analysis.
Value investors buy stocks below their intrinsic values and then wait for them to rebound to fair values.
This old-school investment philosophy resonates with the buy-low-sell-high mantra of dynamic asset management.
However, the Russell 1000 Value index trails the Russell Growth index by 130% in the 9.5-year bull market from late-2008 to mid-2018.
Also, the former lags the S%P 500 market benchmark by more than 50%.
Stock market valuation blows most conventional benchmarks, and the recent mega-cap tech juggernauts drive most of this outperformance.
These tech titans include Facebook, Apple, Microsoft, Google, Amazon, Netflix, and Twitter (FAMGANT).
Recent quantitative value investment strategies have quietly transformed into smart-beta factor strategies.
The latter entail attributing the broad variation in total asset returns to several fundamental factors such as size, value, momentum, profitability, asset growth, and market risk exposure.
Subtracting multi-beta risk premiums from total returns yields alpha estimates or average excess returns after the econometrician controls for multiple fundamental factors in the smart-beta value investment strategies.
On this primary basis of fundamental risk adjustment, value stocks earn higher alphas or average excess returns than the glamor stock counterparts.
Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea.
Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea with no regime change as North Korean dictator Kim Jong-Un intends to end the 65-year Korean War.
Major U.S. and East Asian stock markets experience healthy gains in response to this positive result.
Pompeo is now the most senior U.S. diplomat who directly meets and approaches Kim.
This secret visit signals the fact that President Trump sends goodwill to the North Korean leader prior to their bilateral peace summit.
The recent dialogue between Kim and Pompeo upholds the genuine belief that President Trump can engage in productive negotiations with North Korea over its intercontinental ballistic missile programs.
Trump-Kim direct talks help strengthen the plausible case for peace and denuclearization on the Korean peninsula in the next decade.
Pompeo remains optimistic about a Trump-Kim peace summit during his Senate confirmation testimony for his post of State Secretary.
At this stage, Pompeo expects the peace summit to take place for a positive diplomatic outcome with North Korea.
This summit serves as an incremental step toward Korean denuclearization, and the current dialogue helps alleviate the current nuclear threat from North Korea.
The Trump administration plans to continue the current U.N.-driven economic sanctions on North Korea until its complete and comprehensive denuclearization.
North Korean leader and president Kim Jong-Un seeks peaceful resolution and denuclearization on the Korean Peninsula.
North Korean leader and president Kim Jong-Un seeks peaceful resolution and denuclearization on the Korean Peninsula.
When peace comes to shove, many Asian stock markets reap sharp gains as a result.
As of late-April 2018, Kim crosses the border into the south side of the Korean-demilitarized-zone (KDZ) in a historic embrace with South Korean President Moon Jae-In.
Kim and Moon issue a joint statement that expresses their intention to establish a peace treaty as the formal end of the 65-year Korean War.
They vow to re-unite both sides of the Korean peninsula for greater economic prosperity, sustainable peace, and regional safety.
Both sides now work toward ridding the peninsula of nuclear weapons, and the KDZ border area becomes a peace zone that helps enrich the economic lives of Korean civilians.
U.S. President Trump expects to shake hands with North Korean leader and president Kim Jong-Un in their inaugural peace summit around mid-June 2018.
As North Korea and America have yet to determine the exact time and place for the Trump-Kim peace summit, several media commentators speculate the summit to take place in Singapore, which has historically been a neutral high-income country that respects both diverse ethnic cultures and economic differences worldwide.
Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage.
Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage in response to the Cambridge Analytica data debacle and user privacy breach of trust.
His lengthy congressional delivery before U.S. Senate seems wooden and stiff and sticks closely to his talking points without any major mistakes.
It is clear from the outset that many of the senators are quite tech-illiterate, and the 33-year-old CEO has to explain several basic features of his social network platform.
These basic features include Facebook advertisements, small-to-medium business pages, target audience segments, user data distributions, privacy rules, and service terms and conditions etc.
Zuckerberg reiterates his apologies for Russian interference in the November 2016 U.S. presidential election, Cambridge Analytica data debacle, and new government regulation of social media firms such as Facebook and Twitter.
His answers to some of the tougher questions are less satisfactory, but Zuck never attempts to push back to fill the silence.
For instance, one senator asks Zuck whether he would identify Twitter as its primary competitor.
Zuck deflects the question to focus on the massive size of Facebook as an online social community in direct comparison to some other platform orchestrators such as Apple, Amazon, Google, and Microsoft.
The Cambridge Analytica data debacle affects more than 50 million Facebook users, and several stock analysts and economic media commentators discuss the post-Cambridge crisis for Facebook.
Facebook faces fewer active users per month, and the average costs of Facebook advertisements inevitably surge as the target audience segments become less accurate.
As active usage and social engagement both decline over time, Facebook has to deal with lower sales revenue and bottomline because some business pages may further constrain their ad budgets on Facebook.
The probable increase in Facebook ad expenditures can be highly detrimental to both business and non-commercial organizations that continue to maintain their online presence.
New government regulation may entail subjecting Facebook and Twitter to the same media standards for publishers.
Alternatively, new government regulation may stipulate that Facebook has to break into smaller subsidiaries in direct comparison to the antitrust treatment of Microsoft and Google.
Overall, the current crisis can deter Facebook from tapping into the uncharted territory of both ecommerce and entertainment industries.
CNBC news anchor Becky Quick interviews Warren Buffett in light of the recent stock market gyrations and movements.
CNBC news anchor Becky Quick interviews Warren Buffett in light of the recent stock market gyrations and movements.
Warren Buffett views stocks as small pieces of business enterprises.
He tends to buy large equity stakes of public enterprises with low relative market valuation that manifests in the form of low P/B and P/E ratios (below 1.2x and 9x respectively).
It would be idiotic to just look at the share price when the investor places his or her equity stakes in public companies.
Although some investors and fund managers emphasize a healthy balance between stock and bond portfolio allocation, Buffett focuses on the higher 12% annual long-term average return on stocks in stark contrast to a meager 3%-4% counterpart for bonds.
Given the recent oil price surge, Dodd-Frank rollback, and non-nuclear peace summit between North Korea and America, the current stock and bond market healthy fundamental recalibration offers lucrative investment opportunities.
Warren Buffett shares his key principles for achieving success in life.
First, we should keep a long-term perspective to invest in our own education and social integration for greater wealth, happiness, and fulfillment.
Second, we need to stay humble enough to learn new tricks, concepts, and virtues to build up our own wisdom.
Third, we can invest in bluechip stocks with extra cash and no debt to earn compound interest over time.
These stocks tend to be small profitable cash cows with low relative market valuation that invest conservatively in both capital investment and balance sheet expansion.
In fact, we should learn to live within or even below our means for sound and sustainable wealth creation.
We can be better off owning a small number of well-made and reliable possessions than a large number of possessions that we seldom use in practice.
We should consciously invest adequate time and energy into every part of our lives with minimal destructive spending urges.
China President Xi tries to ease trade tension between America and China in his Boao presidential address.
China President Xi JinPing seeks to ease trade tension between America and China in his presidential address at the annual Boao forum.
In his vulnerable attempt to avert the Sino-U.S. trade war, President Xi announces multiple plans to open China.
These plans include curtailing tariffs on automobile imports, enforcing the legal protection of intellectual properties of foreign companies, and filing formal complaints against the Trump tariffs on steel and aluminum.
However, several sources suggest that it is unlikely for China to completely retreat from the international free trade system.
Should the Trump administration insist on imposing punitive tariffs on Chinese imports, China can follow suit to counterbalance this strategic act with retaliatory tariffs.
In effect, this rare game of chicken weakens the bilateral trade negotiations between China and America.
President Xi's speech strikes a positive tone and serves as a reconciliatory gesture toward the Trump administration.
Chinese doves aim to assuage the cold war mentality of Trump hawks, whereas, the Trump administration can threaten China with additional tariffs.
The Sino-U.S. trade relations may become the Thucydides trap that significant shifts in relative strength of major powers can be a primary cause of bilateral conflict.
Tech stock prices tumble due to Trump's criticism of Amazon's tax avoidance, Facebook data breach of trust, and Tesla autopilot incidence.
Share prices tumble for technology stocks due to Trump's criticism of Amazon's tax avoidance, Facebook user data breach of trust, and Tesla autopilot incidence.
President Trump accuses Amazon of unfairly deferring tax payments via its European operational hub in Luxemburg.
This common cross-border corporate scheme can be legitimate, but this scheme rings the alarm bell for the American, British, and other governments in light of borderline tax avoidance.
Also, President Trump complains that U.S. Postal Service cannot make money because it fails to charge higher delivery prices on the single ecommerce giant Amazon.
Meanwhile, Facebook faces the Cambridge Analytica user data debacle, and U.S. senators are likely to grill Zuckerberg in his congressional testimony.
Both these recent Amazon and Facebook crises trigger sharp share price declines among the top tech titans Facebook, Apple, Microsoft, Google, Amazon, Netflix, and Twitter (FAMGANT).
Moreover, Tesla experiences an autopilot incidence in March 2018 where an autonomous car crashes into a nearby barrier before the driver turns off the artificial intelligence software to correct the car path.
This Tesla autopilot car crash aggravates the recent woes of Uber's recent autonomous car accident.
Some tech stocks exhibit double-digits declines due to the recent crises.
CNBC's business anchorwoman Becky Quick interviews Nobel Laureate Joseph Stiglitz on the current Sino-U.S. trade war.
CNBC's business news anchor Becky Quick interviews Nobel Laureate Joseph Stiglitz on the current trade war between America and China.
When America imposes $60 billion tariffs on key Chinese imports such as steel and aluminum, China fights back with $3 billion tariffs on U.S. exports for at least 128 items.
Stiglitz points out that the poor and less economically-privileged Americans with subpar socioeconomic status and educational attainment are likely to suffer due to higher prices of many consumption goods.
Also, most U.S. corporations finance their capital investments with tax-deductible debt, and so tax cuts will largely benefit these large corporations and high net-worth investors in America.
However, the typical U.S. household will face lower purchasing power, and fiscal stimulus may or may not boost real investment and productivity growth.
For this reason, President Trump's economic policy reform may wreak havoc in real macroeconomic activities, especially if GDP per capita growth cannot exceed investor expectations and inflationary pressures in the medium term.
Stiglitz specifically favors globalization and free trade if the U.S. government sets clear limits on product market liberalization.
President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war.
President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war as China hits back with retaliatory tariffs on $3 billion U.S. exports.
This strategic move hits China for its unfair trade practices with at least 3 major jabs.
First, the Trump tariffs take the form of 25% duties on $60 billion Chinese exports to America.
This first jab is only a fraction of the economic damage that China has done to America by forcibly extracting the intellectual properties of U.S. corporations.
Second, the Trump administration can introduce foreign investment restrictions on Chinese companies.
This prevention can stop Chinese companies from swooping into U.S. competitive advantages.
Third, the Trump administration considers litigation at the World Trade Organization (WTO).
Since the inception of its WTO membership, China has indeed failed to transform into an open democratic society that respects both economic freedom and the rule of law.
Overall, the Trump tariffs signal the dawn of an inevitable Sino-American trade war.
Trump uses the sequential tariff tactics and economic sanctions on China, Iran, and Russia and even some western allies such as Canada, Europe, and Mexico.
These tactical solutions may help dramatically reduce U.S. trade and budget deficits.
Personal finance and investment author Thomas Corley studies and shares the rich habits of self-made millionaires.
Thomas Corley studies and shares the rich habits of numerous self-made millionaires.
Corley has spent 5 years studying the daily habits and routines of self-made millionaires, and then he chronicles these results in his books *Rich Habits* and *Change You Habits, Change Your Life*.
Rich people share common habits, and others can learn from these habits that help enrich their lives.
First, self-made millionaires maintain long-term vision with short-term focus.
They often set bold and lofty life goals, value propositions, and mission statements.
At the same time, the rich focus on both the important and urgent matters that can often lead to positive results.
For instance, these millionaires attend to money matters like value investors who focus on small profitable cash cows with low relative market valuation that invest conservatively in both capital investment and balance sheet expansion.
Second, self-made millionaires cherish and emphasize the importance of self-improvement.
They read books, articles, blogs, and newsletters etc about personal finance, management, and other self-help issues.
This practice allows self-made millionaires to turn unproductive routines into better ones.
Third, self-made millionaires enhance their social integration.
These millionaires like to network with successful people in personal finance, sport, family, or other social events, and their active social engagement extends beyond their inner circle.
In Corley's 5-year study, what self-made millionaires choose not to accomplish is as important as what they choose to accomplish over several years.
Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut press conference.
Fed Chair Jerome Powell raises the neutral interest rate to a range of 1.5% to 1.75% in his debut post-FOMC press conference.
The Federal Reserve raises the interest rate for the sixth time since the Federal Open Market Committee (FOMC) near-zero rate lift-off in December 2015.
In fact, the Fed Chair transition from Yellen to Powell indicates a moderate monetary policy stance from dovish to hawkish in accordance with the recent FOMC minutes.
The Federal Reserve now targets a core PCE inflation rate above 2.1% as the U.S. unemployment rate gradually declines to the lowest level of 3.8% to 4.1% in 17 years.
Most dynamic stochastic general equilibrium (DSGE) New Keynesian macro models suggest that Powell needs to trade off near-full employment with inflationary momentum.
As inflation rises over time, Powell must gradually raise the neutral interest rate to tame upward price gyrations when the U.S. economy operates near full employment.
Former Fed Chair Janet Yellen might prefer to keep the lower interest rate for a longer period of time, whereas, Powell departs from this lower-for-longer dovish and accommodative monetary policy stance in response to FOMC hawks who express deep concerns about high inflation or price instability.
Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM)
AYA Analytica is our online regular podcast and newsletter about key financial news, market insights, economic issues, and stock investment strategies on our Andy Yeh Alpha (AYA) fintech network platform. With both American focus and international reach, our primary and ultimate corporate mission aims to help enhance financial literacy, inclusion, and freedom of the open and diverse global general public. We apply our unique dynamic conditional alpha investment model as the first aid for every investor with profitable asset investment signals and portfolio strategies. In fact, our AYA freemium fintech network platform curates, orchestrates, and provides proprietary software technology and algorithmic cloud service to most members who can interact with one another on our AYA fintech network platform. Multiple blogs, posts, ebooks, analytical reports, stock alpha signals, and asset omega estimates offer proprietary solutions and substantive benefits to empower each financial market investor through technology, education, and social integration. Please feel free to sign up or login to enjoy our new and unique cloud software services on AYA fintech network platform now!!
Please feel free to follow our AYA Analytica financial health memo (FHM) podcast channel on YouTube: https://www.youtube.com/channel/UCvntmnacYyCmVyQ-c_qjyyQ
Please feel free to follow our Brass Ring Facebook to learn more about the latest financial news and stock investment ideas: https://www.facebook.com/brassring2013
Free signup for stock signals: https://ayafintech.network
Mission on profitable signals: https://ayafintech.network/mission.php
Model technical descriptions: https://ayafintech.network/model.php
Blog on stock alpha signals: https://ayafintech.network/blog.php
Freemium base pricing plans: https://ayafintech.network/freemium.php
Signup for periodic updates: https://ayafintech.network/signup.php
Login for freemium benefits: https://ayafintech.network/login.php
We create each free finbuzz (or free financial buzz) as a blog post on the latest financial news and asset investment ideas. Our finbuzz collection demonstrates our unique American focus with global reach. Each free finbuzz provides deep insights into numerous topical issues in global finance, stock market investment, portfolio optimization, and dynamic asset management. We strive to help enrich the economic lives of most investors who would otherwise engage in financial data analysis with inordinate time commitment.
Please feel free to forward our finbuzz to family and friends, peers, colleagues, classmates, and others who might be keen and abuzz to learn more about asset investment strategies and modern policy reforms with macroeconomic insights.
Do you find it difficult to beat the long-term average 11% stock market return?
It took us 20+ years to design a new profitable algorithmic asset investment model and its attendant proprietary software technology with fintech patent protection in 2+ years. AYA fintech network platform serves as everyone’s first aid for his or her personal stock investment portfolio. Our proprietary software technology allows each investor to leverage fintech intelligence and information without exorbitant time commitment. Our dynamic conditional alpha analysis boosts the typical win rate from 70% to 90%+.
Our new alpha model empowers members to be a wiser stock market investor with profitable alpha signals!! This proprietary quantitative analysis applies the collective wisdom of Warren Buffett, George Soros, Carl Icahn, Mark Cuban, Tony Robbins, and Nobel Laureates in finance such as Robert Engle, Eugene Fama, Lars Hansen, Robert Lucas, Robert Merton, Edward Prescott, Thomas Sargent, William Sharpe, Robert Shiller, and Christopher Sims.
Andy Yeh Alpha (AYA) fintech network platform serves as each investor's social toolkit for profitable investment management. AYA fintech network platform helps promote better financial literacy, inclusion, and freedom of the global general public. We empower investors through technology, education, and social integration.
Andy Yeh
AYA fintech network platform founder
Brass Ring International Density Enterprise (BRIDE)
We should not conform to this world, but we should allow the renewal of our minds to transform us, so that we can prove what is the good, acceptable, and perfect will of God.
Romans 12: 2
Comments
Post a Comment