Rate Of ReturnMorning! The Fed held steady, what opportunities are there in U.S. stocks?
Posting the beautiful pink sunset in Shenzhen yesterday.
1. Market Overview
After a significant drop on Tuesday, the three major U.S. stock indices showed mixed performance. Before the market opened, the U.S. released several macroeconomic data points that exceeded expectations: July's ADP private employment data surpassed forecasts, indicating a robust labor market; second-quarter consumer spending also exceeded expectations, boosting market confidence in a soft landing for the economy. In other words, the Fed's two key concerns—employment and inflation—are both within controllable ranges, making a September rate cut a logical next step. Pre-market, U.S. stocks saw a slight uptick. Yesterday, the Nasdaq rose by 0.15%, while the Dow and S&P 500 closed lower. My bullish stance on U.S. stocks remains unchanged, though it's unclear how long this upward trend will last. At least for the second half of this year, I maintain a largely optimistic outlook.
Hong Kong stocks saw a broad-based correction yesterday, with a relatively large decline. However, there's no need to panic—I remain bullish. If the correction reaches my psychological level, I’ll consider adding to my Hong Kong stock positions. The ideal entry point would be around the gap at 24,840. Any such moves will be shared in the group.
2. Individual Holdings
$NVIDIA(NVDA.US)
The top stock in the universe—anyone selling now is a fool. Hold long-term.
$Alphabet - C(GOOG.US)
Q2 earnings benefited from AI and cloud services, with revenue up 14% YoY and net profit up 19% YoY.
$Meta Platforms(META.US)
After hours, Meta released its Q2 report, with revenue, profit, and guidance all exceeding expectations, sending shares up 11% in after-hours trading. Key data points:
Revenue: $47.52B vs. $44.8B expected, up 22% YoY.
Net profit: Up 36% YoY to $18.34B.
EPS: $7.14 vs. $5.92 expected, up 38% YoY.
Guidance: Q3 revenue projected at $47.5B–$50.5B, above Wall Street's $46.14B estimate.
Meta’s focus is twofold: First, AI has improved ad efficiency and returns, showing the company is riding the AI wave and seizing market share—proof of the CEO’s foresight. Second, Meta’s recent talent war in Silicon Valley, while costly in the short term, is a smart long-term move. By recruiting top Chinese researchers, Meta is positioning itself for breakthroughs.
$Apple(AAPL.US)
This year has been volatile: Q1 down 11%, Q2 down 8%, and Q3 finally rebounding. Earnings are today, but don’t expect much—any gains will likely be due to broader market trends and the "Magnificent Seven" rally.
$LAOPU GOLD(06181.HK)
After a steep drop, even junk should bounce—let alone gold. Institutions are aggressively buying, so after confirming the rebound trend on Monday and Tuesday, I’m leaning toward a right-side entry. I’ll consider adding to my position today.
Technically, it shows a double-top pattern, with breakout potential and upward support.
3. Quantitative Signals + Focus Sectors
AI
I’ve long maintained that AI isn’t a short-term trend but a major technological revolution, making it a top investment priority. NVIDIA, my top holding, exemplifies this—AI is the biggest asset class. Dan Butian’s latest 13F shows his top 10 holdings are heavily concentrated in AI: NVIDIA, Google, Meta, Microsoft, Amazon, Apple, Tesla, and Netflix. We hold all of these, with significant weightings. I’m very bullish on the AI supply chain—buy the dips, hold long-term. Any additions will be shared in the group.
Crypto Sector
Yesterday, our quant system flagged buy signals for several stocks, including COIN, CRCL, and MSTR. I bought COIN and CRCL intraday and locked in ~4% gains today. Since this is short-term trading based on technicals and sentiment, I’ll consider taking profits tonight. I hold a core position in CRCL due to its stablecoin appeal, but other crypto plays are too expensive for long-term holds—big money can’t stomach the volatility.
Biotech
China’s biotech sector is promising, with policy support and global expansion driving explosive growth. Innovative drugs represent high-growth opportunities—I’m heavily invested in names like WuXi AppTec, BeiGene, and Innovent, which make up ~20% of my Hong Kong portfolio. Given their growth potential, I won’t take profits but will hold for breakthroughs. Current valuations are high, so new investors should wait for better entry points.
I’ll keep a close eye on these sectors and act decisively on opportunities. Updates will be shared in the group.
These sectors will be my primary focus, and I won’t hesitate to act when opportunities arise. New trades will be shared in the group.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
