Bank of Japan increased interest rate, originally it should make the Yen rises and dollar falls. Therefore, US stock should fall whatsoever. But why the US stocks rises and even near record high? For the news had already been digested, the stock market fell for a week already, and now people buy on bad news. Part of the reason is waiting for Santa Claus Rally. It is quite easy to say that 80% of the Santa Claus Rally would rise, but quite hard to say whether this year is within the rest 20%. It is the hardest job every year, very hard to find out which year is the exception.
What is lying ahead is TSLA, the Full Self Driving is on last stage of testing, already removed the monitor person on board and only uses remote control to monitor the final test. GOOG is still using the high-resolution map, mind that they are not using the map people using in internet, it is a 3-D map specially scanned for use of autonomous driving. It must be developed city by city by radar sensor. That is using the method of adding a sum in Arithmetic. What TSLA is using is sensor as human eyes, and when successful can technically used in 5 continents of the earth at once. It is a multiple Arithmetic that GOOG hard to chase. However, for the sake of better management, the first stage will be only used in 36 cities so as to meet with different local laws. TSLA now has 8,000,000 e-cars all manufactured by their own. Waymo only 2,500 cars, all made by others. If there is no complete revolution in Waymo of GOOG, it will follow the steps of GM or Ford, being eliminated from the market.
The year of 2026 has a big event, that is the IPO of SpaceX, it is incredible that the first day will be around the value of 1.5 trillion, that is the level of top 10 of the market today. Crazy! Crazy! Crazy! But half a year later, the valuation of the market will increase, still should be around top 15 or so. Nowadays TSLA is believed to have most retail investors, and after that, the situation will be led by both SpaceX and TSLA. This will bring about a bloom to the market, no need to worry whether AI is a bubble. According to the Pay & Performance Scheme, if Elon Musk can fulfil all his task, by the end of 2035, price of TSLA can reach $2600. Now analysts changed their forecast, it should be as early as 2030. So, a lot of people want to buy TSLA, but the common problem is limited capital and so much stocks need to buy. So, monthly instalment is one of the best methods though some people say it is the most foolish. But when small investors have limited money, this is the only method.
So, after your study in Christmas holidays and decided what to do in next year, please do not mind the ups and downs of the market when you place your target in 2030 Landing of Mars or 2035 the Pay & Performance scheme of TSLA. Short term fluctuation is nothing but Dusk in the Wind.
How the winds are laughing, they laugh with all their might! (from Donna, Donna)
No one can tell you when will the golden pit come again, just warned of keeping alert. Therefore, Psychological state is more important than the ups and downs, better learn Tai Chi or Yoga to face the turmoil of market. Yesterday the Winter Solstice has just passed away, and S&P is expected to go up and passed through the Summer Solstice on 21st June 2026. Full Solar Eclipse on 12th August 2026 will cover Europe, but Moscow just partial eclipse. Anyway, market will reach the high between Summer Solstice and Solar Eclipse. S&P will reach the climax of 7900.
Warren Buffett, the God of Stocks will officially retire on 31st Dec 2025, before he steps down, he recommended 5 stocks for his (actually your) grandchildren. These are not fast-growing stocks, but will never die and can stand against any crisis over the next 50 years for grandchildren. The ratio is V (25%), COST (15%), BRK.B (20%), MOODY’S (5%) and VOO (35%). People said it is his epitaph, but surprised there is no AI stock and without the Coke he likes most. Please refer to the video of: Warren Buffett: If I Could Only Buy 5 Stocks for My Grandchildren!
For the trend of AI, year 2025 is still in stage 0, and 2026 will enter into stage 1. That is AI will no longer stay inside computer or your I-phone, it will come out as humanoid robot and Full Self Driving on the road. Mind that learning AI will be a major trend for senior citizens, youngsters and housewives. Mars Landing will be one of the hottest topics. How to make more money in 2026 and more than 2025? Learn AI deeper and broader than 2025!