Panic Is Not a Strategy—Nor Is Greed

Here is the article I like to read in 10 minutes.

Best well-written paragraph is the following. I like to read them again and again, and get familiar with the concepts.

The closest thing to a “free lunch”

As I’ve often said, there are very few free lunches in investing. Asset allocation, diversification and periodic rebalancing are as close as you get. One of the most important areas where Schwab offers advice is the development of a long-term strategic asset allocation plan, which can help you create an appropriately diversified portfolio.

Rebalancing—that is, maintaining your target asset allocation by adding to underperforming asset classes and trimming outperforming ones—goes against the emotions of fear and greed that often drive investment decision making. It may be challenging to sell investments that have done well and add to holdings that haven’t performed as well, but developing and maintaining the right long-term asset mix is by far the most important set of decisions an investor will ever make. Rebalancing forces us to do what we know we’re supposed to do, which is “buy low, sell high.”

Here is the list of closest thing in the above paragraph:

Asset allocation, diversification and periodic rebalancing. 

"Charles Schwab Women & Investing Workshop" | Talks at Google

Here is the link. I like to spend one hour to watch Google talk.

Don't try to time these markets, says Liz Ann Sonders

Here is the link.


Don't try to time the market. Re-balance more often. The beauty of re-balance is to force investors to do what we supposed to do. Buy low and sell high. Add low trim high. Your portfolio will tell you what to do next things.

Don't trade on tweet. Go back to basics, discipline, defensive and diversified.




Liz Ann Sonders - Charles Schwab chief investment strategiest

What’s in Your Portfolio? The Role of Various Asset Classes

Here is the article.

Schwab Market Perspective: Will Coronavirus Have a Lasting Impact?

Here is the article.

I like to read one more article, and then I like to take some short notes in the following:

Both “smart” and “dumb” money confidence converged rapidly amid coronavirus concerns

Let me google smart vs dumb money confidence. It is so interesting to read those two concepts first time in my life. 

2020 Market Outlook: Fixed Income

Here is the article.

How Much Can You Withdraw From Your Portfolio in Retirement?

Here is the article.

How Inflation Affects the Benchmark

When Bengen performed his benchmark study in 1994, the average return you could get from conservative investments such as bonds, CDs, and Treasury bills was 5.1%. In 2019, however, Treasury yields were 1.52% and inflation was just over 2%.

High Yield Investment Options for Risk Takers

It is important for me to push myself to stay outside my comfortable zone. One thing I can do is to read more related to investment risk, high yield investment options today.

Here is the article.

The 4 Best Habits of Rich People | Brian Tracy

Here is the link.

Habits of Rick People

1. They have a high self-concept;
2. They step outside their comfortable zone; 
3. They always think positively; 
4. They have a high self-ideal;

How to Become Rich: 5 Reasons Why Most Don't Become Wealthy

Here is the link.

1. Socialize people wealthy - You do not socialize the wealthy and have no idea
2. Never decide to be wealthy
3. Procrastination - Wrong season, wrong year, month by month, year by year
4. Inability to delay gratification - learn to budget 
5. Lack of time perspective - plan daily activities 

6 Steps to Thinking Like a Millionaire | Brian Tracy

Here is the link.

1. Start by writing down your ideas, review on regular basis; 
2. Relax and reflect on your financial goals;
3. Gaining financial independence using the magic wand technique
4. Project forward and think back on your financial goals
5. Practice "Mind-Storming" on every problem
6. Save your money 

Perhaps the most powerful method of stimulating creative thinking is called "mind-storming," or the 20-idea method. 

Age 20, $100/ month, yield 10% one year, until you are 65, you can be a self-made millionaire. 

SMART Investing Goals with Brian Tracy | Phil Town

Here is the link.

A GOAL is something you want to achieve by overcoming obstacles.

S.M.A.R.T

S - Specific
M - Measurable
A - Achievable
R -
T - Time-Bounded

Oaktree's Marks Is Gooing Bargain Hunting for Stocks

Here is the link.

Dow's big swings

Feb. 24, Mon, Down 1,031
Feb. 25, Tue, Down 879
Feb. 26, Wed, Down 123
Feb. 27, Thu, Down 1,191
Feb. 28, Fri, Down 357
Mar. 2, Mon, Up 1,294
March 3, Tue, Down 785
Mar. 4, Wed, Up 1,173
Mar. 5, Thu, Down 969

Warmup: Book reading JavaScript data structure and algorithm

March 6, 2020

Introduction

It is so tough for me to get back to JavaScript coding. I like to have some warmup, and the idea is to read the book called JavaScript data structure and algorithm.

Book reading

It is important for me to warm up JavaScript since I have to work on a small project, I need to go back to learn and read quickly program written in JavaScript.

Here are ideas to work on.

1. Read 10 hours the book;
2. Work on something really simple and basic first;
3. Try to build a good habit to develop skills on programming language;
4. Push myself to learn more about functional programming language;
5. Write and share some learning JavaScript experience; 
6. I need to study and work, and I should not invest time only on C#. 

Do not time the market - how to master the investment game?

March 6, 2020

Introduction

It is tough for me to discipline myself as an investor. I have to work on my TFSA account and stay on the course. I did rebalance my portfolio, and sold some bond and purchased some equity ETF.

Do not time the market

I learn to discipline myself. I am thinking that bear market is coming, and SPX will drop at least 50%. But I like to learn how to discipline myself. Do not time the market, since SPX was going down around 2900, and it was time for me to learn how to rebalance.

Behavior economics

It is hard to learn behavior finance, and specially when the market swung like 4% a day on SPX index. I like to recognize my emotions, and then make decision based on rules to keep balance of my portfolio. Keep it simple. Do not think about coming bear market, Corona virus, just treat it as a normal day go out shopping. 

Here are highlights:

1. June 10, 2019 Purchase VFV.TO at price 67.34, 140 share;
2. January 21, 2020 Sell VFV.TO at price of $77.23, 18 share
3. Feb. 6, 2020 Purchase VFV.TO at price of $78.99, 83 share
4. March 6, 2020 Purchase VFV.TO at price of $70.00, 20 share

My market position of VFV.TO on March 6, 2020, cost/ share 71.8761, market price 70.89, Market value is $15,950.25, P & L (221.88), %rtn is (1.37)

I did sell VFV.To since my portfolio went up unrealized gain more than $3000 dollars, so I sold $2000 dollars to rebalance in January 21, 2020. 

I purchased equity ETF on Feb. 6, 2020 with $6,500 VFV.TO. I like to keep 50% in equity, I like to see another year 30% growth on S & P 500 index.

I purchase equity ETF on March 6, 2020 with $1400 VGV.TO.

Lesson I learned from 2009 to 2019

I do not know how to start my story as an investor. I just could not believe that I got so stubborn and did not learn anything like reading an investment book from 2009 to 2019.

First time  I learned is back in May 2019. I learned that I timed the market since I sold everything in my 401 K, and IRA and moved to money market fund. It is called time the market in 2009. I thought that I was so depressed since I failed my Canada immigration application in Jan. 2009. But actually it was my emotion, I reacted the market change and timed the market. Only thing I remembered was that I walked near FAU stadium, I heard radio saying the market was 15 years lowest point. Did I spend 5 - 10 hours to work on study and research? No!

I like to repeat my story, 43 year old and my finance ignorance.

I timed the market, and sold my par 401 K in 15 years low, and then I never spent any time from 2009 to 2019 December to look into my portfolio, and I did not do any research how to invest on stock market.

I learn the inflation for 10 years with 4% a year, it is 40% of loss counting inflation risk alone. Why did I so pissed off when the portfolio lost over 25% back in 2009? I was naive and did not choose to be a self-learner, I was 43 years old in 2009.

Actionable Items

There are so many emotions and it is hard for me to make decision in terms of investment on stock market. It is better to stay on the course, and keep the original plan.

I should not speculate, even though I spend time to watch videos about Corona virus, but I do not think that I can time the market.

Best result is to take my unrealized gain over $3000 dollars in January 2020; and then I got back in when the market was in 2900 SPX, and then sold them when it was in 3100 SPX. But it is impossible, no one can time the market.

‘My name is Kobe Bryant’ – (1996) Kobe gives a class presentation on NBA vs. college

Here is the link.

March 5, 2020 - Dow's big swing

March 5, 2020

Introduction

It is so interesting to see Dow's swing again and this time went down again. I think that it is time to consider to purchase VFV ETF again. 

Kobe Bryant: What Basketball Taught Him About Business

Here is the interview I like to spend time. I like to learn how to learn from Kobe and how he transferred from sports to business. How good he was as a learner in three years after he retired.

Kobe Bryant and Jeff Stibel on the growth of their venture capital fund

Here is the link.

Ex-NBA superstar Kobe Bryant scores points as an investor by preaching patience

Here is the article.

Kobe Bryant’s $600 Million Fortune: How He Won On—And Off—The Court

Here is the article I like to read again, and then take some notes. I like to learn how to build wealth and learn from Kobe.

12 Deadly Investment Mistakes You Must Avoid

Here is the article. I like the article and will take some notes in short future.

Common Investor and Trader Blunders

Here is the article.

Here's what experts think about the markets in response to the Fed rate cut

Here is the link.

This is an opportunity to upgrade your portfolio: Morgan Stanley's Wilson

Here is the link.

March 4 2020 S & P 500 Index 4% increase

March 4, 2020

Introduction

It is so nice to see S & P 500 index go up more than 4% today. I like to show my key largo portfolio and see how it is related to S & P 500 index.

Key largo portfolio

Case study: maximum subarray

Case study: check completeness of binary tree

Case study: Check completeness of binary tree

March 2, 2020

Introduction

It was my 10:00 PM mock interview. The interviewee has super good performance, and I like to conduct a short case study.


Case study

Here is the code he wrote. What he did excellently is to go over the test case carefully, and step by step to prove his idea work, and then he started to code. He finished coding in less than 10 minutes bug free, quick and efficient, and I tested it.

March 2 2020 - TFSA portfolio

Watch CNBC's full interview with Berkshire Hathaway CEO Warren Buffett

Here is the link.

March 2 2020 Par 401 K market change

March 2, 2020

It is time for me to record market change on this day.

Actionable items

I had this 401 K account since I worked for par tech in 2007. My original deposit is $8000 dollars. I made mistake to time the market, and sold all assets in 2009 and put them in money market.

I never spent any time to review and learn something from 2009 to 2019. I noticed one time the market change was up 40% in 2010 when I started to work on my current job.

I didn't know why I made such bad choice, and I had such bad decision making, bad economy behaviors. Even though those are common mistakes, I learn that it is my job as an adult, learn every day about business. I should learn finance literacy by myself.

March 2 2020 market change over 4%

March 2, 2020

Introduction

It is my short time research about stock market one day change, and I like to show case my key largo portfolio, which is my USA retirement IRA account.

Key largo portfolio

Here is the snapshot of market change on March 2, 2020.

Here are stocks FANG:

MSFT            172.79 6.65% +10.78
Apple             298.81 9.31% +25.45
Facebook       196.44 2.06% +3.97
Amazon         1953.95 3.73% +70.20
Netflix           381.05   3.26% +12.02

CNBC Special Report: Markets in turmoil amid coronavirus outbreak — March 1, 2020

Here is the link.

THE BEHAVIORAL INVESTOR (BY DANIEL CROSBY)

Here is the link.

This is an animated video summary of the most important takeaways from Daniel Crosby’s The Behavioral Investor, a 2018 book taking a modern approach behavioral investing.

Top 5 takeaways: 00:27 1. 4 Behavioral Risks Crushing Your Investment Returns 04:02 2. How to Manage the 4 Behavioral Risks 09:05 3. How to Design a Winning Rule-Based System 11:26 4. Why Value Investing Works 13:17 5. Why Momentum Investing Works

- To become a great investor, you must learn to suppress your ego, avoid conservatism in your stock pickings, paying more attention to numbers than stories and that no good investments are made under powerful emotional influence - Cope with ego by spreading your money across at least a few different stocks, conservatism by flipping the script and asking, “why not?”, instead of “why?”, attention by playing the odds and emotions by automating and learning to recognize your emotions. - A winning rule-based stock picking system should have empirical support, theoretical support and (some) psychological pain attached to it - Value investing a la Warren Buffett and Benjamin Graham fulfills these criteria - Momentum investing also fulfills all of the criteria for a winning rule-based stock picking system

9:50/15:44
3. how to design a winning rule-based system
It will help you avoid:
blown-up ego
paralyzing conservatism
attention issues
emotional roller-coasters

Mock interview bring-home assignment

March 1, 2020

Here is the algorithm I like to work on. I got this algorithm from the interviewer on March 1, 2020 10:00 PM mock interviewer, who is a Uber engineer.

Given a value N, if we want to make change for N cents, and we have infinite supply of each of S = { S1, S2, .. , Sm} valued coins, how many ways can we make the change? The order of coins doesn’t matter.

For example, for N = 4 and S = {1,2,3}, there are four solutions: {1,1,1,1},{1,1,2},{2,2},{1,3}. So output should be 4. For N = 10 and S = {2, 5, 3, 6}, there are five solutions: {2,2,2,2,2}, {2,2,3,3}, {2,2,6}, {2,3,5} and {5,5}. So the output should be 5.

Actionable Items

The above algorithm is Leetcode 518 coin change 2, and I like to review both algorithms, 518 coin change, and 322 coin change.

Case study: Find contiguous subarray with maximum sum

March 1, 2020

Introduction

It was my 10:00 PM mock interview. The interviewer is the engineer from Uber working on backend, who used to work on Yahoo backend as well.

Case study

Here is the code I wrote. I ran the code using web compiler and it works fine.


Interviewer feedback

Interviewee feedback

Actionable Items

I went through the code with a simple test case, and then explained to myself and interviewer how it works. I did say that one variable name should be changed to maxEndAtI.

I should learn how the interviewer gave me suggestions. Walk through the test case to explain the idea, [1, 4, -100, 1].

March 3, 2020
I ran the code against Leetcode online judge - 53 maximum subarray.
The failed test case:
Input: [-1]
Output: 0
Expected: -1

CONSERVATIVE INVESTORS SLEEP WELL SUMMARY (BY PHILIP FISHER)

Here is the link.

Billionaire investor Leon Cooperman on stocks and coronavirus outbreak

Here is the article.

COMMON STOCKS AND UNCOMMON PROFITS SUMMARY (BY PHILIP FISHER)

Here is the link.

1.  Expanding market - automatic drive, ...
2. Develop new products
3. Efficient R & D
4. Above-average sales organization
5. ...
6. Keeping that profit margin - cut costs
7. Great labor relations
8. Awesome executive relations
9. Depth in management
10. Great cost analytics
11. Great industry specifics
12. 
    

The scuttlebutt method

You are diversifying too much.

Other factors to consider:
 different industries
multiple branches 
5. Fish(er) in the right pond

For all companies??
- No way!

Fisher's 15 points checklist

Top 5 takeaways from Common Stocks and Uncommon Profits: 00:10 1. Fisher’s 15 points checklist 04:16 2. The Scuttlebutt method 06:40 3. Unconventional wisdom 1: Dividends don’t matter 09:32 4. Unconventional wisdom 2: You are diversifying too much 11:46 5. Fish in the right pond

- An investment should tic most of Philip Fisher’s 15 points checklist to be considered a great growth stock - Use “Main Street” resources, such as suppliers, customers, trade associations and former employees to beat Wall Street in the stock picking game - Look for companies that have great confidence in their businesses, where money is being reinvested in productive activities, rather than being dealt out in dividends - How to invest in stocks? Don’t diversify too much – the more companies you own, the less you know about each of them. - One of the most important investing strategies that you can learn about is filters. There are so many opportunities out there – but so little time. My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

美股投资研究之：又到了崩盘抄底的时候么？怎样抓住10倍大牛股？成长股投资的秘诀是什么？

Here is the link.

Wayfair layoffs

Here is the article. 

相信很多人都听说Wayfair今天发生了十年不遇的大裁员，作为一个才入职半年的new grad不幸中招，成为牺牲品，来地里跟大家聊聊。
简单自我介绍一下，本人于19下半年入职wayfair labs，顺利毕业后，选择了storefront并被manager捞到一个比较核心的组。小组里包括我一共4个engineer，两个senior，一个L1。

其实头两天就有听朋友说起要大裁员，但我一直蜜汁自信。从labs开始我的performance feedback就一直都很好，正式入组以后更是一度成为主力。一入组就解决了一个盈利相关的重大bug，上个sprint我们组有26分的ticket，我一个人就写了14分。我觉得就算要裁员和我也无关，我的manager和tech lead都非常器重我，下周还即将开始一个更重要的microservice项目，以为可以高枕无忧。

直到我收到email那一刻，我才意识到，生活从来都不会只有岁月静好。

说说这次的大裁员，我所在的大team大约30来个人，目测被laid off的就已经有8个人，组里3个pm全部阵亡，sub team里每个组再捐出1到2个人头，猜测辞退的标准是根据在wayfair工作的时间。这次的裁员跟performance完全无关（起码在我的team里是这样），甚至连Level 4 的manager都是当天才被通知的，无权参与提供意见，我的manager在wayfair工作了8年，只给了一句comment: I have never seen this befor.

给还没有身份的小伙伴们一个忠告，一定要有危机意识，千万不要被资本主义的假象所蒙蔽，谁都有可能成为第二天就牺牲的韭菜，在公司里一没资历，二没身份，开刀的就是你。对于opt只有90天的grace period，stem和h1b只有60天，对于毫无准备的人来说想要找到满意的下家真是只能听天由命。自从拿到offer以来我已经近乎一年没有刷过题，如果我一直抱着一定要去FLAG这种级别公司的信念坚持刷题，就不会像这样手足无措。

Actionable Items

I do not practice Leetcode last two months. I was so busy to learn so many things, like restful API, data storage, system design interview. 

In reality, it is important for me to continue to work on easy level algorithms every week. So I can keep pushing myself to work hard. 

Key largo portfolio - March 1 2020

March 1, 2020

Introduction

I like to document my balance on March 1, 2020. It is hard to go through market crash, but I have to learn how to invest in long term.

Key largo portfolio

It is my USA retirement account. I should not care too much balance right now. I need to rebalance again. It is time for me to purchase VOO.

I think that market may crash another 20% to 30%. So I should wait at least three months to balance. Do not react the market change.

Victoria portfolio March 1 2020

March 1, 2020

Introduction

It is so tough for me to learn how to invest on stock market. I have read more than one thousand hours about investment, but I like to say that it is so hard to learn how to ignore market noise, understand risk aversion.

Victoria portfolio

Here is my Victoria portfolio performance. It is time for me to rebalance my portfolio.

反弹信号乍现:美股经历最惨一周 全球警报就此解除？

Here is the article.

更值得关注的是，三大指数盘后期指的表现，三大期指盘后悉数大幅反弹，其中纳指期指涨幅近2%。这是在美股经历金融危机以来最惨一周之后，出现的首个反弹信号。

　从市场结构来看，美国大型科技股周末收盘出现企稳迹象，苹果跌0.06%，亚马逊跌0.03%，奈飞跌0.72%，谷歌涨1.85%，Facebook涨1.43%，微软涨2.42%，特斯拉跌1.62%。这些股票盘中的跌幅都比较大。值得注意的是，费城半导体指数大举反弹，该指数盘中最大跌幅亦达3%以上。

El-Erian weighs in on the stock market sell-off and why he believes the Fed will cut rates by March

Here is the link.

Markets plunged for the sixth consecutive day on Thursday, shaving over 1,100 points off the Dow. Mohamed El-Erian, Allianz Chief Economic Adviser, joined The Final Round to discuss his outlook for this market.

Allianz's El-Erian: Resist the inclination to buy the coronavirus-driven dip

Here is the link.

In February, Mohamed El-Erian, chief economic advisor at Allianz, said that he would advise resisting the temptation to buy the initial coronavirus dip. He joins "Squawk Box" by phone to discuss his position following Monday's market sell-off.

Coronavirus Impact A Global Market Crash

Here is the link.

Looking For Events and Buying Companies That Are on Sale- InvestED: The Rule #1 Podcast Ep.

Here is the podcast.

Why I'm Waiting for the Next Stock Market Crash | Phil Town

Here is the link.

Most of the time, successful investing is a waiting game. Just as there are poor times to sell your stocks, there are poor times to buy them as well, and sitting on money while you wait for a better opportunity is often one of the best investing decisions that you can make. http://bit.ly/2ITq1Ap

Ray Dalio - 24 months market crashes

Buffett has cash over 120 billion.

How to play bear market game in 2020?

Feb. 29, 2020

Introduction

It is time for me to learn how to play bear market game. I have TFSA account with $65,000 dollars deposit from May 2019, and now I have to decide to continue to play the investment game. I need to learn when I am still young, 53 years old.

How to play bear market game?

Stay on the course. No one can predict high or low. I like to stay on course.

Every one is screaming to stay out of market. The bear market dipped twice in 2008 and 2009, one time is 20%, second time is 30%. I think that the market should drop more than twice, and more than 50%.

Is a Recession Coming? I React to Chris Hogan's Video | Phil Town

Here is the link.

The Ugly Truth Behind Stock Buybacks

Here is the article.

Now, I have some theories on why stock buybacks have gotten so out of control. Mostly, I think it’s because we’re in a period of massive technological disruption. New industries like cloud computing, electric cars, and streaming video are rapidly changing the world. But in my opinion, older companies like HP have been too slow to adapt, and rather than investing in research and development (or simply holding onto cash) the corporate boards of legacy businesses are bolstering stock prices the only way they know how: playing defense and buying back stock.

10 things you should know about portfolio performance

Here is the article.

The myths and realities of the S&P 500

Here is the podcast. I like to spend time to listen, so I can calm down and then watch the market continue to go down this Friday Feb. 29, 2020.

Understanding performance: The S&P 500 Index

Here is the article.

I think that it is better for me to read something. I can learn better to read articles, take notes, and write down my thoughts.

Learn About Bonds in a Stock Bear Market

Here is the article.

7 Ways to Invest in a Bear Market

Here is the article.

Do This Now to Protect Against a 2020 Bear Market

Here is the article.

What if SPX loses 20% value in coming recession?

Feb. 27, 2020

Introduction

It is my short research. I have to work on how to rebalance my TFSA account, if SPX continues to drop down the value.

20% drop in total

I will have no worry. I just put $13,000 dollars when SPX was 3300 in February 2020. I should have $2600 dollars loss in market change.

What if SPX loses 30% value in coming recession?

What if SPX loses 40% value in coming recession?

What if SPX loses 50% value in coming recession?

What if SPX loses 60% value in coming recession?

What if SPX loses 70% value in coming recession?

What if SPX loses 80% value in coming recession?

What if SPX loses 90% value in coming recession?

Feb. 27, 2020

Introduction

It is hard for me to work on this topic. If SPX loses 90% in one year, two year or three years, then what should I work on my TFSA account?

TFSA account

I just set up my TFSA account and deposited $65,000 dollars. 50% is in equity fund, in other words, $33,000 dollars are in equity fund.

If SPX will lose 90% of value, then I should not rebalance when SPX drops 20% or 30%. I should wait more drop instead.

The idea is to reduce risk to lose more value in future uncertain market. 

Rebalancing in a Bear Market

Here is the article.

How To Adjust a Portfolio in a Bear or Bull Market

Here is the article.

The U.S. Stock Market is Down Big -- What Should Investors Do?

Here is the link.

As the coronavirus has continued to spread and the number of affected individuals continues to climb, the stock market has begun to feel the pain of uncertainty. There are legitimate concerns -- of safety, and health, and how a potential pandemic could impact individuals and companies across the globe. These kinds of shocks to the global economy often lead to huge drops in share prices for companies, and that can scare investors. But often panic selling during these periods of uncertainty can be a huge mistake. In this video, we talk about how the coronavirus might impact the economy and stocks, and: - What you should do during a stock market crash? - Which companies do well during hard times?

TFSA - Feb. 27 2020

Feb. 27, 2020

Introduction

It is so interesting to learn that the stock market crashed quickly in less than one week. But I am ok, I still remembered that in Nov., 2019 my Victoria portfolio's performance was around $500 dollars. Now I just got the same market change because I invested another $13,000 dollars on equity fund when SPX is 3300.

TFSA - Make a mark

I like to remember the mark on Feb. 27, 2020.

How to understand US stock market?

Here is the article. 

当前的美股，它并不是一个完全市场化的市场，股票的价格，也根本不反应公司的价值。而是成为了一种信贷创造工具。因为信贷泛滥，投放出去的货币在市场上找不到投资机会。这些钱就会流入美股为主的资本市场。金融机构和企业拿到钱之后，不是去进行实体经济的投资。而是回购股票，推高股价，公司的股价高了，估值就高了。然后再利用高估值，再去银行贷款，贷更多的钱出来。然后再进一步推高股价，如此反复操作。这就是美股当前价格一直涨的基本动能。

如果摧毁了美股的资产价格，就可以摧毁美国的整个信用体系。这套庞氏信贷就难以为继了，美国的经济也就无法正常运转了。美国的金融机构，会出现大面积的破产，整体上都会遭到毁灭性的打击。

Actionable Items

Google search using keywords: what is bad about buying back stocks, and then I like to read a few articles to understand the pros and cons related to this. 

Dow drops 1,100 points, continues fastest 10% drop in history

Here is the link.

MSFT -7.05%  158.18
Amazon.com  -4.81%  1884.30
Alphabet class A -5.43%  1,314.95
Apple -6.54%  273.52

S&P posts biggest percent drop since August 2011

Dow's big swings

-128   Feb. 20
-227   Feb. 21
-1031 Feb. 24
-879   Feb. 25
-123   Feb. 26
-1191 Feb. 27

Lori Calvasina
RBC head of U.S. Equity strategy


Take my own notes:
Facebook 3.78%
Apple    6.54%
MSFT     7.05%
Amazon   4.81%
Netflix  1.99%
Oracle   2.44%
Cisco    5.03%
Nivdia   5.57%

2/27/2020

MSFT stock Feb. 27, 2020

Feb. 27, 2020

Introduction

It is biggest loss in one day for MSFT stock, more than 7%.

SPX Feb. 27 2020

Feb. 27, 2020

Introduction

It is such a big loss on one day, 4.7%. I just could not believe that stock market has biggest correction in one day.

SPX index

Par 401 K Feb 27 2020

Introduction

It is the third big day with loss more than 2% on SPX. I like to document my Par 401 K loss on Feb. 27, 2020.

Par 401 K

Key largo Feb. 27 2020

Feb. 27, 2020

Introduction

I like to memorize the loss on stock market. I like to figure out what to do next, do not react, do not time the market.

Key largo portfolio

#3 - 10 DISTINCTIONS BETWEEN MILLIONAIRES AND THE MIDDLE CLASS PEOPLE - PART 1

Here is the video to explain the book in 5 minutes as part I.

10 traits rich people have in common

Here is the article.

10 habits to start in your 20s if you want to be a millionaire

Here is the article.

TFSA Two day market change $2400 dollars

Feb. 25, 2020

Introduction

I just purchased another $13,000 dollars equity fund when SPX is around 3300, and last two days market change is negative $2400 dollars.

My TFSA account

I like to record my market change of last two days, TFSA account.

Feb. 12, 2020
Market change is $2985.91

Feb. 25, 2020
Unrealized gain $662.80

Par 401 K - February 25 2020

Feb. 25, 2020

Introduction

I like to record my Par 401 K balance update. I like to spend some time to learn how to work on my asset allocation.

Feb 25 2020

It is the second day sell-off. I like to study the loss and see what I should do.

Feb. 24, 2020

Feb. 25, 2020

Remember Feb. 25 2020 - Key largo portfolio

Feb. 25, 2020

Introduction

It is another day of sell-off. I like to record my loss of portfolio Key Largo.

Another sell-off

Here is the snapshot of my account on Feb. 25, 2020.

Par 401 K - remember Feb 24 2020

Feb. 24, 2020

Introduction

It is the challenge job for me to learn how to invest my Par 401 K. I like to remember my short two year work experience to work for Siva and Par tech. I like to grow my finance IQ with my account.

Feb. 24, 2020

I just spent a few minutes to look into Charles Schwab's web page. I found this page by choosing a few configuration options.

Key largo portfolio - remember Feb 24 2020

Feb. 24, 2020

Introduction

It is challenge for me to prepare for the bear market I like to record the loss today - Feb. 24, 2020, my USA retirement account IRA.

Feb 24 2020

It is a simple idea to copy the screen. I like to learn how to invest stock market.

Bear market research

Feb. 24, 2020

Introduction

It takes me some time to learn about bear market. I came cross this article in Chinese, and I like to take some notes, and think about the arguments / statements about asset allocation.

Asset allocation

第二种方法，是在第一种方法的基础上，加入债券、房地产信托等不同的资产，充分发挥多元分散的价值，帮助投资者既能获得比较好的投资回报，又能坚持下来长期投资。

在这里，给大家举一个的例子来说明一下。假设我们做一个很简单的投资组合，那就是50%的股票（标普500指数）和50%的债券（美国10年期国债），每年再平衡一次。

我们可以看到，从1980年到2018年的38年内，全股票的投资回报，为每年10.84%左右。而50%股票/50%债券的投资组合，年回报为9.93%左右，虽然比不上百分百股票，但也不算太差。

一半股票一半债券投资组合的主要优势，在于风险和回撤。该投资组合的年波动率，为10%左右，比全股票的波动率（16%左右）低了1/3。同时，一半股票一半债券投资组合的最大回撤，为2008年的25%左右。而全股票的投资组合，在2000和2008年都经历过超过30%以上的巨幅回撤，足以让大部分投资者胆战心惊。

这个简单的例子告诉我们，通过一些多元资产的组合配置，可以有效的大幅度降低投资组合的风险，提高投资者坚持长期投资的信心和耐心，帮助他获得更好的回报。和纯粹百分百买股票相比，多元分散投资方法的长期回报可能不如股票，但是它可以有效解决股市波动大，投资者没有择时能力，因为害怕大跌而踏空，或者没有足够定力坚持长期投资的问题。

同时，投资者可以根据自己的风险偏好，灵活的设定投资组合的配置比例。比如那些有能力承担风险，有较多经验的投资者，可以配更多的股票。而经验不足，风险偏好低的投资者，则可以减少股票，增加债券等相对来说比较安全的资产类别。每个人，都可以根据自己的个人情况，选择最合适自己的资产比例。

Be consistent!

Feb. 24, 2020

Introduction

It is easy to say that do not get depressed. But in reality, I went through tough life in USA and Canada from 2001 to 2019. I sold all stocks I purchased and moved them to bank CD from 2001 to 2010, and never spend time to look into how to invest again. Those first 10 years in Canada from 2010 to 2019 are wasted and I did not learn how to invest at all. I like to write a topic called "be consistent!"

Be consistent

I like to compare two images with data. I will add the detail later.

Make millions as an investor

Feb. 24, 2020

Introduction

I like to write a short research topic called how to make millions as an investor. Now it is 12:45 AM, I had two hour nap from 7:30 PM - 9:30 PM, and I need to go back to sleep in 10 minutes.

Make millions as an investor

I did case study on my mistake on investment on VIGRX from 2001 to 2002. I made a series of mistakes on other stocks like MSFT, Oracle and Intel as well, and other funds.

I like to read as many topics I can, learn how to make millions as an investor, if market goes up or down for a few cycles, next five or six years, before I turn 60 yrs old.

I like to live a frugal life. I drove 2001 Honda accord, less than 5000 KM a year. I do not spend money on clothes any more. I do not take vacation.

Recently I came cross the return of top 10 stocks from 2009 to 2019, those stocks are called 10-bagger stock to 60-bagger stock. I was so surprised that I do not hold any thing on stock market from 2010 to 2019. I did purchase a lot of technology stock just after 2001 Sept. 11 event. Here is the folder on github.com.

Actionable Items

I like to work on a case study, how Amtrust interest with over 5%, so I gave up my portfolio and moved my IRA to Amtrust bank IRA CD.

Also I did not study how to invest from 2001 to 2019, over 18 years.

8 miles morning run

Feb. 24, 2020

Introduction 

I went out with Chinese running group this morning 8:30 AM, and I had two hours run eight miles. I like to write something about my experience, as a runner, I spent two hours to go outside, and enjoyed my workout.

Strava app

I like to share my Strava app's workout record first.

Every mile I have a selfie

Every selfie keeps friends away. I got lost on the running trail, so I ran underneath another skytrain line.

My weight is 192 lb. I like to run 4 weeks, and I like to lose 10 lbs.

I came cross so many high-rise buildings, but I could not afford any one of them. I like to challenge myself, work hard and push myself to learn personal finance. Make millions in stock market.

First investment mistake - VIGRX can be over $10,000 dollars

Feb. 24, 2020

Introduction

I did case study on my short investment from 2001 to 2002 on VIGRX, and the loss is over $10,000 dollars from my viewpoint in 2020. I like to be a millionaire, so it is so easy for me to figure out those investment mistakes from my 2001 portfolio, all those holdings I sold them in less than a few year, a few of them are over $5,000 dollars loss.

Case study

Here is my blogs related to VIGRX mutual fund.

How to Maintain Sibling Relationships

Here is the article.

Case study: Design twitter

Feb. 23, 2020

Introduction

It was my mock interview as a system design interviewer. I have to push myself hard to perform better as an interviewer. I had chance to interview an engineer with strong coding skills, since I am not sure how good he is in terms of system design, I also asked a coding question to double check. I like to write a short case study on this mock interview.

Case study

I will add more detail later.

Here is the link.

Actionable Items

The interviewee is Microsoft SDE II. I should learn from his performance. Good analysis and very good communication skills.

Case study: vertical traversal of binary tree

Feb. 23, 2020

Introduction

It is my algorithm interview as an interviewer. I did my test to give two algorithms to test the interviewee, and I wish that I should prepare a tough algorithm as a second one in order to find weakness from the interviewee. I like to write a short case study on this one.

Case study

I will add more detail later.

Case study: rod of length - dynamic programming design challenge

Feb. 23, 2020

Introduction

I got the chance to be interviewed on interviewing.io since I am a volunteer on the platform. I get one interview if I interview two people. So I like to write a short case study on my mock interview.

Case study

I was asked to solve rod of length problem. I will add more here later.

Here is the gist.

After tax Roth in-plan conversion

I search Google using keywords "After tax Roth in-plan conversion", and then here is the article.

SECTION ONE: ROTH 401(k) AND AFTER-TAX CONTRIBUTIONS

1. What is a Roth 401(k)? A Roth 401(k) allows you to designate a percentage of your 401(k) retirement plan contributions as Roth contributions. Roth 401(k) contributions are considered optional and are made on an after-tax basis. Roth 401(k) accounts were designed to combine the benefits of saving in your tax-deferred workplace retirement plan with the advantage of avoiding taxes on your money when you withdraw it at retirement. Think of contributions to your VMware, Inc. 401(k) as having three separate “buckets”: pre-tax, Roth, and after-tax.

When you retire or leave VMware, Inc., earnings on your Roth contributions can be withdrawn tax free as long as it has been:

• Five tax years since your first Roth 401(k) contribution and
• You are at least 59½ years old.

In the event of death, beneficiaries may be able to receive distributions tax free if the deceased started making Roth contributions more than five tax years prior to the distribution. In the event of disability, your earnings can be withdrawn tax free if it has been five tax years from your first Roth 401(k) contribution.

Roth 401(k) contributions fall under the same IRS limits as pre-tax contributions to your Plan, so each dollar of a Roth contribution reduces the amount that can be contributed pre-tax (and vice versa).

• In 2019, the total combined IRS contribution limit for Roth 401(k) and/or traditional 401(k) pre-tax contributions is $19,000.
• If you are age 50 or older in the calendar year, you may make an additional catch-up contribution of $6,000 in 2019, bringing your total pre-tax and/or Roth 401(k) contribution to $25,000 for the year.

If I want to retire early, where should I keep my money? | Afford Anything Podcast (Audio-Only)

Here is the link.

Roth vs. Traditional IRA & 401(k) for Early Retirement? | Afford Anything Podcast (Audio-Only)

Here is the link.

I love the podcast. It is so good to learn that ROTH IRA has $55,000 dollars upper-limit. And it is better to fill those accounts of ROTH-IRA first, and then invest 401 K account.