Yi Zhou - Comments

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Taking Ownership Of Your Retirement Outcome
8 years ago

People should make their retirement plan as early as they can. Employees should not totally rely on the retirement benefits provided by their employer, such as 401(k). They can choose another efficient investment vehicle - annuity to generate the after-retirement income. Thus they can control their own retirement benefit and make it more reliable.

Epic Battle: Hedge Funds Versus China
8 years ago

I don't think the devaluation of yuan will cause a currency war. It seems like yuan break up with US dollar due to their different economic stages.

Since 2008, Chinese currency has tried to be strong in order to avoid the currency war as well as the capital outflow. However, due to the expected increase in interest rate of US dollar and the slowing economic growth of itself, China has decided to devalue its currency in this period. This is a kind of macroeconomic strategy, rather than a reluctant action made by the government. In this way, China can attract more overseas capital and stimulate the domestic consuming demand. What's more important, the government took a fast and accurate action to avoid huge arbitrage benefits which will flow out from China.

There are some people really suffering from the devaluation of yuan, such as the visitors from China, the investors who want to allocate their assets to overseas market, and most important, the international student like me. LOL

Why Apple May Not Win In China
8 years ago

This may have been true a few years ago. However, Apple products are no longer luxury goods for Chinese people. They don't need to buy it for "show" but not for use. That's a waste of money, which Chinese people never want to do. More and more young people in China love and use Apple products. It's a huge market for Apple Inc.

Chinese electronic products also have their own advantage. Most of them apply Google's Android system. As the author says, there are less restrictions than Apple. Users can download their mobile application free and from the Android market or other sources. If Apple wants to dominate the electronic market in China, it has to develop more attractive applications and a more flexible system.

In this article: AAPL
10 Investment Rules From Investing Legends
8 years ago

People are happy when make money, but they feel much worse when they lose money. Investors really should think about the risk they can tolerate. Last year in China, when the stock market data fluctuate greatly, many investors committed suicide because they can not bear that much investment risk.

Another mistake that investors may make is depending too much on the "average data". The average data that most company provide is the arithmetic average, which means the sum divided by time period. However, the money doesn't work that way. Imagine that you have $100, the first month it goes up by 10%, and the second month it goes down by 10%. It seems you should get your $100 back, because the average return rate is 0%. But guess what? You only have $99 (=$100*1.1*0.9). You will lose money even if it goes up and down by the same percentage.

Watch the data carefully and think rationally before you put your money in!

Can Lower Oil Prices Cause A Recession?
8 years ago

The falling oil price not only influences the oil producer's supply chain vertically, but also drives their competitors, the other parts of energy market down.

As we all know, there are some severe problems in China economy. Let's find out the ones in the energy part. In order to compete with the low oil price, coal producers in China have to cut down the coal price and their cost. Under the pressure of the declining RMB exchange rate, they need to reduce the price enough to sell the inventory, which even couldn't cover their cost. Then many workers in coal mines were laid off or couldn't got paid for their labor. Many of them seek an investment vehicle in the Chinese stock market, which has a terrible performance recently. People lose both their job and their money. They have nothing to rely on and cut their consuming expense consequently. As a result, more people lose their job and a vicious circle establishes.

The lower oil price really causes a economic disaster globally.

In this article: USO, SPX
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