[Learn Premium] TSMC poised for more growth; know your risk profile and more
Major US indexes had a mixed week, with the Nasdaq Composite hitting an all-time high, but the S&P 500 and the Dow Jones Industrial Average snapping their six-week winning streaks.
The tech-heavy Nasdaq was boosted by $Tesla (TSLA.US)$ ’s trong rally last week, while investors are also keeping a close eye on Big Tech earnings coming out this week.
Speaking of Big Tech, Taiwan Semiconductor Manufacturing Company ( $Taiwan Semiconductor (TSM.US)$ ) is as big as they come in Asia.
The world’s largest contract chipmaker delivered a huge surprise in its 3Q earning report, continuing its impressive record of outperformance in both 1Q and 2Q. Earnings per share for the third quarter came in 8.91% higher than consensus estimates, and analysts think there’s more to come.
Analysts project TSMC’s adjusted earnings per share to grow up to 2.36 in 3Q2025 from the 1.79 in 3Q2024, contributing a further $5.7 billion of revenue. From a fundamental perspective, with external factors such as the rising strong demand for AI chips, TSMC is poised for a long-term rise @财神爷到.
Bitcoin’s flying but don’t forget your risk appetite
Outside of tech, Bitcoin too, has been doing well. The cryptocurrency is up more than 50% this year. One friend @RAY Chia is wondering if he should allocate more to it.
Well, the same advice applies wherever you’re dabbling in crypto, stocks, or other asset classes – it depends entirely on your own risk profile and holding horizon.
Cryptocurrencies are highly volatile products and can be prone to wild fluctuations in pricing. Moreover, it remains less regulated compared to traditional instruments such as stocks, bonds, or ETFs.
You would also have to consider - are you holding it for the short term or long term? Are you comfortable with your portfolio value swinging wildly for the long term?
Leveraged ETFs – is it for you?
Over to a sector that’s a little less volatile. With bank stocks doing pretty well recently, our friend @102817630 @Sherrychee is wondering if a more aggressive investing approach into the sector is warranted.
For starters the Direxion Daily Regional Banks Bull 3X Shares ETF (DPST.US) is a leveraged ETF, which makes it unsuited for a “buy-and-hold” approach due to the instrument’s inherent decay. In essence, leveraged ETFs are primarily intended for short-term trading, aiming to achieve excess returns beyond the index's movements up or down.
If you are looking to hold US banks, this is not the ETF for you. You can go look up DPST and search for the breakdown of the fund to see the individual components that make up this ETF. If you want a more accurate ETF that reflects the US banks, both national and regional, you can consider KBE US.
Finall, to round off this week’s questions, we have one on options trading, with our friend @101684468 wondering if we should close or wait for it to get assign, then close it.
Well, this depends on two factors:
If you’re an investor and your options expires in the money, it would be recommended to wait for it to get assigned such that you would get ownership of the stock. If you lean towards short term trading, closing the option would allow you to keep the premium.
If your option expires out of the money, your option becomes worthless. closing the option prior to the expiration date would incur higher losses as you have to pay for transaction fees as well to close the option.
Hope this is useful to all our users out there. Stay safe, trade safe!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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