Inflation Rate is announced, it can be seen clearly on page 1 that it is rising since Sep for 4 consecutive months. The worry of worries is that the tariff war of Trump may push it higher and higher.
Originally, by the end of 2024, people expected interest rate of 2025 may go down 3 or 4 times, but now according to Chicago Target Rate it would go down just once. Even some investment bank expect it would go up. It really depends on how Trump carry out his tariff war.
As I always said no need to buy the AMD and TSLA so soon, some people asked can they do the short selling? It is not advice for individual investors, it’s for professional investors only. For when you buy up, your earning is unlimited and your loss is just all the money you invested. When doing the short selling, your profit is limited to the price that drop down to zero only, but your loss is unlimited. It will include not just all your money you invested in that stock selling, but all your money in your stock account, plus your bank account and all the money you have earned in the past and future. Even such an extreme case may happen once in every 10 years, but who know it will fall to whatsoever people.
TSLA jumped up after the General Election of Nov 5 and now came down but not yet refill the jumping gap. People say can catch the rebound, of course it can, but short term trading should have a level of stop loss, or else you have to prepare to buy again on lower levels for the second, third, fourth and fifth times. That is why I said it is not suitable for those that has heart disease or potential heart disease.
So you better buy the TSLS (ETF) if you look bearish on TSLA, and AMU if you look bearish on AMDD. In such a case your loss is limited but profit unlimited.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.