Thank you for your question. I prefer the charts and graphs to speak for me but here is my 2 cents for all it’s worth. Vanguard is usually very conservative in its forecast and some of their previous forecasts have been off. However, it is true that the market is overvalued based on PE, Tobin’Q, Buffet indicator etc… and investors are expecting double digit returns every year which is not sustainable. Only time will tell but I would not be surprise if we see lower annualized returns over the next few years.

I believe it highlights consumer financial strain. The consumer sentiment index is also at very low levels currently, meaning people have low confidence in the economy. You can check out this article: Total US Money Market Balance Is Approaching $8T that I wrote this week, it explains more about the Consumer Sentiment Index.

In my view, the long term approach taken by institutional investors and the size of their portfolio allow them to get exposure to illiquid alternative investments such as hedge funds and private equity. If these institutions have access to top alternative funds, I expect their performance to be less correlated, less volatile, and more lucrative. Retail investor access is changing and while you need to be an accredited investor to have access, it may become "easier" to take part. Of course, alternatives are often misunderstood and non-marketable, therefore, I would encourage a lot of research to see if it is a good fit before investing. Alternatives could provide the needed diversification many investors lack. Need more insights? Subscribe to this newsletter by clicking on my profile.

We will need to watch this closely. I will definitely write another piece in case of a significant event like this.

Thank you for the advice and I agree with you. Investors are not specifically looking for WiMi's diversification but for its sales growth potential, technology advances, and the position it has developed in the Chinese AR industry.

Thank you for the read and comment. Although the lack of transparency makes this valuation difficult, WiMi is known to be the leader of AR in China. This year is going to be very important for the company. I would do another valuation piece if their sales become international. As for the stock, it is not receiving enough attention in my opinion. This technology is growing fast and a specialized company like WiMi is hard to find.

I agree, the China risk is elevated. However, the diversification of the company in multiple industries helped this valuation to be around the $10 level. Thank you for the read and comment Dr. Ma!

Thank you for the read and comment!