U.S. stocks are frenzied, and AI concept micro cap stocks are crazy

Mondo Finance Updated on 2024-02-17

U.S. stock frenzy: rational thinking in a speculative frenzy.

In this age of information, we have witnessed all kinds of wonders of the beauty field. The surge in small and micro-cap stocks such as Supermicrocomputer, Nvidia, Soundhound AI, Recursion Pharmaceutical, and Nano-X has undoubtedly provided a feast for speculators.

However, behind this carnival, should we maintain a trace of calmness and rationality?

First of all, the surge in these small and micro-cap stocks is undoubtedly influenced by the investment of large companies such as Nvidia. This kind of "following the herd" phenomenon is not uncommon in the investment market, but the key question is, should we blindly follow the herd? As the ancients said: "Those who know others are wise, and those who know themselves are clear." "In the investment market, we need to have a clear self-awareness and judgment, and not be fooled by the frenzy of the moment.

Secondly, the speculative atmosphere in the US market is becoming more and more intense, which undoubtedly increases the risk of the market. As one philosopher once said, "Risk and benefit go hand in hand." "While pursuing high returns, we cannot ignore the potential risks. This kind of speculation in the U.S. market is likely to lay the groundwork for a future collapse. Therefore, as investors, we should have a long-term vision and not be overshadowed by immediate benefits.

In addition, the investment strategy of the US market is also worth pondering. Strategies such as Long Magnificent 7, Short C, Long Japan, and Short Dollar, while they may bring some benefits in the short term, their sustainability is questionable in the long run. For example, Japan's nominal GDP has been surpassed by Germany, which speaks volumes about the limitations of some investment strategies. Therefore, we should seek a sound and sustainable strategy in our investment, rather than blindly pursuing short-term high returns.

In contrast, although the A** market also has its fluctuations and risks, on the whole, it pays more attention to the rational release of risks. This does not mean that there is no speculation in the A** field, but it is that, on the whole, the A** market is more stable and rational. Therefore, for investors, the A** field is perhaps a more noteworthy and researched area.

In short, the fanatical and speculative atmosphere in the US market reminds us to remain rational and calm in investment. Not to be confused by the frenzy of the moment, not to be carried away by the immediate interests, to seek a stable and sustainable investment strategy, this is the principle we should uphold in the investment market. In this era full of uncertainties, let us face the challenges and opportunities of the market with a more mature and rational attitude.

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