Morning review：
Dear friends, hello, I am Don Adam Perera. the founder and chief quantitative analyst at New World Asset Management.On this hopeful morning, I am very excited to look forward with all of you to today’s central bank meeting in Jackson Hole, where Federal Reserve Chairman Powell will deliver a significant speech. Together, we will explore any hints of a potential path for rate cuts mentioned in his speech, which will be crucial for our investment strategies.
At the same time, today we will also focus on synchronously building our positions by selecting high-quality stocks in the market to achieve stable profit returns. This is a great opportunity to combine macroeconomic guidance with specific operational skills. Let’s take advantage of this opportunity to accurately capture market trends and take successful steps together on our investment journey.
Today, we are focusing on building positions in stocks within the gold sector. Let us now concentrate on the fundamental information of this strong stock and understand the logic behind choosing it.
The current global geopolitical tensions, particularly the instability in the Middle East, have led to an increased demand for gold, a traditional safe-haven asset, among global investors. As investors flock to the gold market, we have witnessed a continuous rise in gold prices, reaching new highs.
When gold outperforms the broader market indices, it often acts like the “canary in the coal mine,” signaling potential economic or financial instability. Traditionally, gold is considered a hedge against inflation and a safe haven during crises. Thus, the strong performance of gold may indicate investors’ concerns about rising inflation, currency devaluation, and geopolitical tensions.
This chart compares gold to the S&P 500 Index over the past 52 weeks.
This chart compares gold to the S&P 500 Index for the year 2024 to date.
Central banks around the world, especially those in developing and emerging countries, have been buying gold in larger quantities than we have traditionally seen. In fact, in 2022 and 2023, they purchased so much gold that it accounted for about one-quarter of the annual global gold purchases.
A significant portion of gold purchases has occurred in Asia, with China leading the way. The People’s Bank of China has increased its gold reserves for 17 consecutive months, marking the longest streak of increases in history. Meanwhile, the Reserve Bank of India, as well as central banks in Kazakhstan and Singapore, have also been boosting their gold reserves.
Gold has long been regarded as a reliable means of wealth preservation, especially during economic difficulties. It is a time-tested financial safety net that helps maintain purchasing power even in economic downturns. Unlike modern fiat currencies, which can depreciate due to factors like inflation or government economic decisions, gold’s value does not depend on these factors. This makes it an unparalleled choice for a savings method that does not depreciate over time.
Now let’s focus on the information about the high-quality stocks we have selected in the gold sector.
The company is primarily a gold producer, with significant operations and assets in the United States, Canada, Mexico, the Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company also engages in the production of copper, silver, lead, and zinc. As a world-leading gold company, it is committed to creating value and improving lives through sustainable and responsible mining.
Based on the latest financial data, our analysis indicates that this company has shown significant advantages in multiple key financial metrics. Firstly, the company’s gross profit margin has reached 48.89%, which indicates a significant improvement in profitability. At the same time, the net profit margin has also reached 19.38%, demonstrating a substantial increase in operational efficiency.
Additionally, the return on total assets is 6.05%, indicating that the company’s ability to generate returns on total assets remains stable. More importantly, the return on equity has reached 11.49%, which shows a significant enhancement in the company’s ability to provide returns to shareholders.
In terms of growth potential, the company also performs well, demonstrating its stability in medium to long-term financing capabilities. These excellent financial indicators not only reflect the current financial health of the company but also provide solid data support for our investment decisions.
Overall, the company demonstrates positive trends in profitability, asset return capability, and growth potential, making it a worthwhile investment target to consider.
Now, the stock we are focusing on has presented a good opportunity to build positions. For those interested in participating, you can directly contact my assistant to obtain the specific code of this strong stock and related position-building information.
Additionally, I will meet with everyone again in the community this afternoon, where we will discuss how to determine the best buying and selling points during stock uptrends. This is a crucial skill that can help us achieve better results in our investments. I look forward to an in-depth exchange with all of you later. See you later.
Closing commentary：
Dear friends, hello, I am Don Adam Perera, the founder and chief quantitative analyst at New World Asset Management. I am delighted to analyze and discuss Federal Reserve Chairman Powell’s speech with all the friends in the community, seeking to identify future trend directions.
What are the key signals conveyed by the Federal Reserve Chairman’s speech?
What is the main direction of the stock market?
During an uptrend, how can we find the best positions for buying and selling?
I will share information on these topics.
Today, global investors focused on Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole meeting, which provided us with crucial clues about the Fed’s path to rate cuts. Chairman Powell issued the clearest signal yet that the time for rate cuts has arrived. This statement not only confirmed market expectations for the central bank to start cutting rates next month but also marked that the Fed’s historic actions in combating inflation are about to enter a new phase.
In his remarks, Chairman Powell also emphasized that measures will be taken to prevent further cooling of the labor market. This information is extremely important for us investors, as it directly relates to the future direction of the market and the investment environment.
Having received such positive signals, I believe that today, all of us stand at the starting point of a global investment feast, which will be the best moment for achieving wealth profit growth. Therefore, I encourage every friend not only to seize opportunities in live trading but also to continuously optimize our investment portfolios, ensuring that our investments remain profitable in this positive investment environment.
Our investment strategy is clear, and our market focus is divided into three main directions: for the long-term strategy, we have chosen NVDA, a leader in the artificial intelligence sector; for the short-term strategy, we focus on TSLA, a representative of the new energy vehicle industry; for the medium-term strategy, we have selected NEM from the gold sector. These choices not only represent our investment layout across different market cycles but also reflect our judgment on the current main trends in the stock market.
Our investment portfolio is now fully configured. With this setup, we can fully capitalize on the investment opportunities brought by technological innovation and market uncertainties, while also providing solid hedging protection for our assets through the gold sector.
Dear friends, based on the current market analysis, the overall trends of NEM, TSLA, and NVDA remain unchanged. With stable trends, whenever the price pulls back to key strong support levels, it provides us with very good opportunities to re-enter. Therefore, I have decided to hold these stocks for the time being and continue to observe the market performance next week.
At the same time, I will closely monitor the daily stock market trajectory as well as changes in market policies and economic data, and adjust our investment portfolio accordingly. This approach ensures that our investments can be aggressive when the market is favorable and effectively defensive in adverse situations, achieving stable profits.
The observations and actions mentioned above also serve as a summary of this week. I hope each of you can develop the good habit of daily and weekly reviews. By summarizing experiences and lessons, you can lay a solid foundation for achieving higher profit returns in the future.
In the investment market, being able to accurately determine buying and selling points is key to success, and learning is the cornerstone of our continuous improvement. Now, let’s start our learning journey today. I will focus on sharing with you how to determine the best buying and selling points during an upward trend.
The chart above shows the price trend of MU from September 2023 to March 2024.
Dear friends, we all hope that our stocks are in an upward trend because this means we can achieve continuous profit returns. When analyzing an upward trend in stocks, we typically identify the strength and sustainability of the trend by observing continuously higher lows and higher highs on the charts.
Taking MU stock as an example, its upward trend can be described through seven points: A, B, C, D, E, F, and G. In such a trend, we need to pay special attention to support and resistance levels, which are crucial for deciding when to buy and sell. The chart shows that E and F are strong support positions, while A, B, C, D, and G represent key resistance levels.
In terms of trading strategy, we should buy at strong support levels to capitalize on the potential upward movement of the stock price; and consider taking profits and selling when it reaches strong resistance levels to lock in gains.
A very critical point here is the position at point G. When the stock price successfully breaks through point G, it usually indicates that the upward momentum is very strong, and the stock price is likely to continue to climb, bringing greater rebound strength.
Therefore, understanding and applying these analytical skills will help us manage our investment portfolios more effectively, seize every profit opportunity, and also better mitigate risks.
Dear friends, the methods we discussed today are simple yet extremely practical. I believe many of you have mastered these techniques through today’s learning. My sharing always progresses from simple to complex, and as long as you all continue to follow our community’s daily shares, I believe that in the near future, each of you has the potential to become an expert in the investment field.
Let’s work together, move forward in the world of investing, and step towards a life of financial freedom. I hope today’s sharing has been helpful to everyone, and I wish you all a pleasant weekend.