Random thoughts on the week

Yes, it is only Wednesday morning… :slight_smile:

  • Chinese Hedge Fund released DeepSeek and instantly catapulted to the top.
  • It demonstrated the futility of SVC-US Government-VC racket to geo fence and corner AI market by throwing mountains of money.
  • Following DeepSeek, $BABA released its Qwen model, which incorporated some of the deepseek enhancements and claiming significant benchmark gains.
  • For the chinese new year, spring festival dance, Chinese women danced with 16 robots powered by AI. This shows range of motions, ability to work with humans. A significant jump.
  • The administration will continue to flex its muscles by banning chip exports, tariffs to contain China. Even though it is producing the opposite of what it is intended to achieve.
    • The failure of imagination

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  • Chinese economy is muddling post-COVID
  • Chinese government is trying to simulate the economy. Mostly the efforts are seen by US investors as half measures, the question is, Will these incremental rain drops create the effects of a torrent, at some point in future?
  • Chinese stock market valuations are low, the markets have significantly underperformed US and even other “developing” markets.
  • The valuations are low, Chinese governments want their stock market to raise.
  • On Jan-13th $BABA hit $80 and it rallied 25% to touch $100 today, in mere 11 trading days, without any major news or earnings.
  • The broader $FXI increased 13% Since Jan-10th.
  • I watched this rally from the sideline, :sob: :sob: :sob:
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Here is an interesting piece of Marco Rubio’s interview as Secretary of state…

So it’s not normal for the world to simply have a unipolar power. That was not — that was an anomaly. It was a product of the end of the Cold War, but eventually you were going to reach back to a point where you had a multipolar world, multi-great powers in different parts of the planet. We face that now with China and to some extent Russia and then you have rogue states like Iran and North Korea you have to deal with.

I wish Marco Rubio decodes this for the benefit of majority Americans. What he said is, we are now in multipolar world (read it as bipolar) and China is the other polar.

Now, China would not have ascended to such levels without economical, industrial and military power. Setting aside the politics, unlike Russia during Cold war days, one can invest in China!!! Chinese market was way behind US and even other emerging markets. Even stocks with good growth potential are trading at value price.

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