The Nasdaq You Imagine vs. the Real Nasdaq
Taiwan stocks revolve around TSMC; the U.S. market is basically a private club for the Magnificent Seven.
You think you're investing in Taiwan's entire economy? Wrong. You're just betting on TSMC. When TSMC falls, the whole Taiwan stock market takes a nosedive. What kind of risk diversification is that?
So U.S. stocks should be better, right? The Nasdaq sounds international and massive, doesn't it? Sorry, it's just another private club held hostage by the Magnificent Seven.
Take a look at the Nasdaq 100: Apple, Microsoft, Nvidia, Google, Amazon, Meta, and Tesla. Together, these seven companies directly control nearly half the index's weight and its ups and downs!
What does that mean? It means that even if the other ninety-something companies work themselves to the bone making money for you, all it takes is two of these big players sneezing—or Nvidia taking a hit like it did recently and dropping 5%—for the whole index to go down with them.
A few days ago, a client came to talk to me about a renovation and, while he was at it, bragged that he'd recently bought 0050 and was also regularly investing in a bunch of ETFs tracking the Nasdaq. He thought his portfolio was well diversified and safe.
I called him out right then and there: What the hell do you mean, diversified? No matter what you buy, the underlying logic is still that you're at the mercy of these AI and tech giants.
You think you've bought a basket of eggs, but it turns out seven of them are dinosaur eggs. If even one or two crack, all your other eggs will get crushed to smithereens.
We think the market is all about free competition and a diverse range of players, but in reality, it's long since taken the shape of monopolistic capital. If you don't recognize that reality and keep fantasizing about sector rotation, you're basically preparing to donate your money to Wall Street and foreign investors.
I'm not saying all this to tell you not to buy. I keep a firm grip on my own brokerage account too. I'm just reminding everyone not to be fooled by all those dazzling indices when watching the market. Getting the fundamentals right is what really matters.
#純情老郎君的靠北日常 #美股七巨頭 #台積電 #納斯達克
$NVDA
$AAPL
$MSFT
Taiwan stocks revolve around TSMC; the U.S. market is basically a private club for the Magnificent Seven.
You think you're investing in Taiwan's entire economy? Wrong. You're just betting on TSMC. When TSMC falls, the whole Taiwan stock market takes a nosedive. What kind of risk diversification is that?
So U.S. stocks should be better, right? The Nasdaq sounds international and massive, doesn't it? Sorry, it's just another private club held hostage by the Magnificent Seven.
Take a look at the Nasdaq 100: Apple, Microsoft, Nvidia, Google, Amazon, Meta, and Tesla. Together, these seven companies directly control nearly half the index's weight and its ups and downs!
What does that mean? It means that even if the other ninety-something companies work themselves to the bone making money for you, all it takes is two of these big players sneezing—or Nvidia taking a hit like it did recently and dropping 5%—for the whole index to go down with them.
A few days ago, a client came to talk to me about a renovation and, while he was at it, bragged that he'd recently bought 0050 and was also regularly investing in a bunch of ETFs tracking the Nasdaq. He thought his portfolio was well diversified and safe.
I called him out right then and there: What the hell do you mean, diversified? No matter what you buy, the underlying logic is still that you're at the mercy of these AI and tech giants.
You think you've bought a basket of eggs, but it turns out seven of them are dinosaur eggs. If even one or two crack, all your other eggs will get crushed to smithereens.
We think the market is all about free competition and a diverse range of players, but in reality, it's long since taken the shape of monopolistic capital. If you don't recognize that reality and keep fantasizing about sector rotation, you're basically preparing to donate your money to Wall Street and foreign investors.
I'm not saying all this to tell you not to buy. I keep a firm grip on my own brokerage account too. I'm just reminding everyone not to be fooled by all those dazzling indices when watching the market. Getting the fundamentals right is what really matters.
#純情老郎君的靠北日常 #美股七巨頭 #台積電 #納斯達克
$NVDA
$AAPL
$MSFT
