00479 August 10, 2024

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Over the long run, the market only rises

Clubhouse: relaxed conversations about investing, CLEC Investment and Financial Management Channel, August 10, 2024

Market volatility has nothing to do with me!

• Market volatility has nothing to do with me!

• International affairs have nothing to do with me!

• Market analysis has nothing to do with me!

• Financial statements have nothing to do with me!

• Economic conditions have nothing to do with me!

• None of it has anything to do with me!

• Ignore the noise and turbulence of the market!

Investing blindly without learning is dangerous

• Watch our videos and ask specific questions, including:

• The video number and the timestamp where the question came up.

• Asking questions after watching the video is the most effective way to learn.

CLEC has no discussion groups, and we have not authorized anyone to act on our behalf

• We cannot know the membership or purpose of any group, and such groups can easily be infiltrated by people with bad intentions.

The investments we mainly recommend are the Nasdaq 100 index fund QQQ and the corresponding local ETFs issued in each country

• Do not rely entirely on financial consultants, including Charles Schwab financial consultants. They can help with account opening, but we do not recommend fully adopting the ETFs or other financial products they suggest.

• Over the long term, the Nasdaq 100 index fund and the S&P 500 index fund have been among the best-performing investments. Outside of these, individual stocks, funds, and financial products usually do not help investment success and should be avoided.

We recommend investing 100% in a Nasdaq 100 index fund.

United States: We recommend buying QQQ, or QQQM for smaller accounts. Cash can be placed in money market fund SWVXX or short-term Treasury bill ETFs BIL and SGOV.

Taiwan investors: We recommend Fubon NASDAQ 00662. Cash can be invested in CTBC U.S. Government 0-1 Year Bond ETF Fund (00864B.TW).

China investors: We recommend 513100/513300/160213/159941/161130/159660.

Hong Kong investors: You can choose HKD 3086, USD 9086, ETF 2834 (HKD), or 9834 (USD).

Canada investors: We recommend converting to U.S. dollars and buying QQQ directly, or investing in Canadian-dollar products QQC.TO/ETF (HXQ.TO).

Australia investors: We recommend buying NDQ.

United Kingdom investors: We recommend the U.S.-dollar-denominated iShares VII Public Limited Company - iShares NASDAQ 100 UCITS ETF (CNDX.L). In Europe, we recommend EQQQ and CSPX.L.

Brazil: The recently launched Nasdaq index fund is NASD11.

Japan investors: You can choose 2568/1545/2631.

Malaysia and Singapore investors: You can purchase U.S. QQQ through a Phillip Securities POEMS Cash Plus trading account.

South Korea: The recommended QQQ ETFs are 368590.KS/133690.KS/367380.KS.

Since 2018, we have kept all videos on YouTube so everyone can learn investing in chronological order

• The videos reflect the market conditions and appropriate investment decisions at the time. As time changes, some strategies may no longer apply. They remain valuable learning resources.

• Viewers should interpret each video in the context of the market conditions at that time, and develop their own thinking and judgment.

• Our early investment recommendations included certain individual stocks and regular funds. Although they were good choices at the time, suitable investments must also account for personal risk tolerance and investment strategy.

Investors are always extremely optimistic!

Investors always face the sunshine!

The market will ultimately rise!

Investing requires patience!

Wealth is worth waiting for!

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The market will keep rising forever; it only rises and never falls

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• What's worth reading

• https://youtube.com/@smzdd?si=KilNJdyvLwqJ-6qP

[Retirees should deleverage and reduce debt!]

• Generally there is salary, and when there is cash inflow, expanding leverage is a plus and can speed up asset appreciation.

• But if you choose to retire early or have already retired, whether it is a financial mortgage loan or a large sum of money pledged at one time, it will not increase the value of the assets (safe allocation must increase the cash reserve position and can only choose to invest in assets that are volatile and have low returns.) If the safety control of asset allocation is not done well, the risk will increase.

• Therefore, you need to leverage after you retire, and you can only increase your loans while you are still working. You can only borrow loans that can be repaid with your salary.

• Increasing debt leverage without salary and stable cash flow will only increase risks and fail to increase asset appreciation. The above are general rules! Those who have retired and have no positive cash flow need to leverage and reduce debt.

An investment example based on an average annual return of 14% is as follows

The following examples can attract young people to be interested in investing. These examples demonstrate the importance of small, sustained investments and the amazing effects of long-term compound interest, which can help young people better understand the value of investments and inspire their motivation to invest.

An investment example based on an average annual return of 14% is as follows:

Example 1: The power of small investments - invest 1,000 yuan per month: If you invest 1,000 yuan per month in 00662 (QQQ) (Taiwan's Fubon Nasdaq index Fund), assuming an average annual return of 14%, this investment can grow to approximately 17.3 million yuan after 40 years. This means that by consistently investing a small amount every month, you can accumulate huge wealth over the long term.

• Example 2: The magic of compound interest - A one-time investment of 100,000 yuan: If you invest 100,000 yuan in 00662 (QQQ) now, assuming an average annual return of 14%, this investment will grow to approximately 18.88 million in 40 years. $1,000,000 now is worth nearly $200 million in the future. This demonstrates the power of compounding, where time and a steady rate of return can lead to significant growth even without additional investment.

Example 3: The importance of starting early - Start investing 10 years in advance: Assume two people, each investing 2,000 yuan per month into 00662 (QQQ). A starts at the age of 25 and B starts at the age of 35, with an average annual return of 14%. A's investment value by the age of 65 is approximately 34.6 million yuan, while B's investment value is only approximately 9.19 million yuan. This goes to show what a significant difference starting investing early can make. Ten years earlier, investment assets would have been nearly 25.41 million more

This is why if you invest ten years earlier, you can retire early when you are in your forties, and you can retire after only investing for 20 years. You will have hundreds of millions more assets than someone who understands investors 10 years later and continues to work until you die.

And if you continue to work, you will never be able to catch up with the investors who stuck early. If you start investing ten years later, even if you work until you are 100 years old, you will never be able to catch up with the wealth of investors who stuck early. No matter how hard you work, the wealth gap between the two will still get wider and wider. This is why ordinary people cannot catch up with the wealth of the rich.

Example 4: The of regular fixed amount - Regular fixed amount investment: Even if the market fluctuates, a fixed monthly investment of funds to 00662 (QQQ) can avoid short-term market fluctuations, and you can still enjoy the average market return in the long term. This method is simple and stable, and is very suitable for young people who do not have much investment experience.

These examples demonstrate the importance of small, sustained investments and the amazing effects of long-term compound interest, which can help young people better understand the value of investment and inspire their motivation to invest.

Investors must understand that the market will definitely fluctuate, and there will be many times in life when the market drops by more than 50%. Don't panic when there is a big drop, and you must insist on not selling until you continue to buy. Otherwise, when the market drops, many people will lose their success. Selling is always wrong.

Pledged-loan interest rates for newly opened accounts are currently relatively high

• Hello, teacher!

• 1.) To update you, XX Securities does not accept 00662, but their maximum loan limit for a single account is NTD27 million.

• 2700 / 0.6 = 4500, that is to say, the highest you can receive is 00662, which is equivalent to 45 million (anything more than that will not be charged. If the market value of the stock you have deposited exceeds 4500, the stock you have deposited will not be pushed out, but the current maximum is 2700, and we will not lend you more money because the market value of the stock you have deposited is high)

• 2.) Although I was given a quota of 70 to 80 million yuan, after deducting 27 million yuan, the other 30 to 40 million yuan of collateral can be other stocks.

• 3.) Fortunately, I opened tens of millions at another financial institution before, so I just transferred the money that didn’t charge 00662 back to the other one.

• Currently, the pledge interest rate for newly opened accounts is relatively high.

• James: I believe this is because the previously approved interest rates were low, and the financial industry took measures to lower interest position limits in order to increase interest rates.

• Kate: The current mortgage situation in Taiwan is very chaotic. The interest rate may be raised at any time, or the limit may be reduced. It is recommended to maintain more than two securities companies to maintain flexibility. Don't bet all the stocks, keep them in your own account, it's easier to move them around.

The U.S. index will always rise; waiting is only a waste of life!

• Buy the U.S. Nasdaq 100 index fund when you have money. Hesitation is usually the biggest investment mistake.

As heaven moves with vigor, a gentleman strengthens himself without ceasing; that power is great!

• Compound interest is powerful!

• Heaven is in good health, and a gentleman’s constant self-improvement has great power!

• A little bit a day, the time that passes is huge!

• Although the earth's environment and ecology evolve a little bit every day, after hundreds of millions of years, we have changed from apes to humans. After billions of years, the earth has experienced five ice ages due to a slight angular deviation every year.

• Therefore, time is the source of all power. "It's impossible to make changes in a short period of time."

CLEC Investment and Financial Management Education Academy 00451, "2024" First Investment Class: An Investment Life Lecture Worth 100 Million Yuan, December 29, 2023, CLEC Investment and Financial Management Channel https://youtu.be/4FMjmyBpTzw

It is wonderful and joyful when the market rises every day

We have a pinned comment in the YouTube comments area where you can download handouts and find other related links.

Or email me at [email protected] or [email protected].