00515 Stock Pledging is Wisdom, Day Trading is Gambling: If You Don't Understand the System, You'll Be Eaten by the Government's System. A Preliminary Discussion on 'Stablecoins!'

I. Theme of the Session

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The core of this session is to emphasize the importance of emotional control and mental fortitude in long-term investing, proposing a life attitude of “Whatever, it’s all fine, it doesn’t matter” to cope with market fluctuations and life’s challenges. Teacher James elaborates on asset allocation principles, especially the critical role of cash position (recommended not less than 30%) in stock pledging strategies, and critically analyzes Taiwan’s day trading policies and their impact on investors. Furthermore, the course integrates profound insights on the meaning of work, personal growth, meditation, mindfulness, and emerging financial trends (like stablecoins).

II. Presentation Content

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Recommended Learning Resources (Mentioned at the beginning)

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• Facebook Page “inrichment疾风胜”: Teacher James mentioned this Facebook article, which covers not only investment and financial management but also psychological preparation and mindset adjustment, offering a “mental massage” effect.
• “CAD贵妇理财” (CAD Wealthy Lady Financial Management): Also mentioned as a good sharer of financial management content.

Prerequisites for Stock Pledging (Discussed at the beginning)

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• HSBC (Hong Kong) Stock Pledging Threshold: Must be an “HSBC Premier” client or above, meaning one needs to have over 1 million HKD in assets with HSBC Hong Kong; this is a VIP service.

Market Volatility and Investment Mentality

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• The market is often swayed by news, causing volatility. Investors should understand the reasons but avoid letting emotions dictate their actions, which could lead to wrong decisions (like panic selling or greedy chasing of highs).
• Controlling emotions is crucial. One can adopt methods like “tying one’s hands and feet,” such as temporarily locking accounts or deleting apps to avoid impulsive operations.
• Example Strategy for Large Capital Investment: For 1 million in funds, 500,000 can be bought at market price immediately; another 250,000 can be bought in batches (e.g., 50,000 per month for 5 months), disregarding short-term fluctuations; the remaining 250,000 serves as cash reserves or for discretionary decisions. The ultimate goal is to have most of the capital (e.g., 75%) in the market.
• Teacher James’s investment philosophy is unrelated to short-term stock market fluctuations, emphasizing the principle of buying as soon as it’s available.

Investment Philosophy and Life Attitude

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• Risk Aversion: Life is about avoiding failure, not pursuing extreme success. The priority in investment is to “survive”; stable profits are more important than risking bankruptcy. Simplicity is also a form of success.
• Reduce Desires, Strengthen Inner Self: Avoid “greed, anger, and delusion”; adopt an attitude of “Whatever, it’s all fine, it doesn’t matter” towards material possessions and relationships. Only by not fearing loss can one truly possess.
• Dare to “Break the Mold” (破局): Life, like negotiation, often favors those who dare to “break” (break conventions, not afraid of falling out).
• Focus on Life, Downplay the Market: Correct investing is not time-consuming; one should focus on living happily and let time make money for us.
• Meditation and Mindfulness: Can be practiced anytime, anywhere. Focus on the present moment (e.g., breathing, conversation), without dwelling on the past or future, maintaining inner peace (a mind like still water).

Analysis of Taiwan’s Day Trading Policy

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• The Taiwanese government encourages day trading by reducing transaction tax (securities transaction tax halved) to increase market liquidity.
• Teacher James’s Critique:
  • No Capital Gains Tax: Superficially beneficial to long-term investors, but it actually doesn’t encourage long-term holding because short-term trading also has no capital gains tax, giving no extra advantage to long-term investors.
  • High Transaction Costs: The “securities transaction tax” (actually a transaction fee) becomes extremely high with frequent trading. For example, a transaction cost of 0.6% (0.3% for buying and 0.3% for selling), if traded 10 times a year, would erode 6.16% of the total capital as fees, far exceeding expected returns.
  • Misleading “Securities Income Tax” (正所税): What Taiwan calls “securities income tax” is not a true income tax (paid only when there’s income) but a transaction fee (paid upon transaction, regardless of profit or loss), a misleading term for the public.
  • Retail Investors’ Dilemma: This policy essentially causes retail investors to lose money due to high fees in frequent trading, while the government collects more transaction fees.
• Comparison with the US: Transaction costs are very low, but there is a capital gains tax, which to some extent encourages long-term holding.

Learning and Thinking

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• Independent Thinking: Others can provide knowledge, but thinking must be done by oneself. A life without thinking is not very meaningful (though the teacher also reflects on this, believing different lifestyles have their own meaning).
• Lwin’s Sharing (Regarding lump-sum vs. installment investment): Depends on individual risk tolerance. If an investment leads to panic after a market drop, it means the position is too heavy; one should increase the cash proportion until market fluctuations can be faced calmly.
• IM’s Sharing (Young people’s investment and primary profession): Young people should focus on their primary profession; investment should not take up work time. Work is not just for making money, but also for serving others and realizing life’s meaning.

Core Principles of Asset Allocation (Related to Stock Pledging)

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• Cash is King: The initial cash position should not be less than 30% (e.g., 30% cash in a 4-3-3 allocation, or 50% cash 50% QQQ).
• Use of Leveraged Funds: Leveraged funds should not exceed the cash position, nor should they exceed the position of core funds (like QQQ).
• Can be adjusted according to individual risk tolerance, e.g., 4-2-4 (40% QQQ, 20% leverage, 40% cash) or no leverage at all.
• Final performance depends on the market, not the precise asset allocation ratio.

Other Important Tips

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• CLEC Resources: The YouTube channel has a “Investment Lecture Worth 100 Million” series; it’s recommended to start learning from 00451, then watch in the order of 00398, 00399, 00400.
• Community Principles: Focus on CLEC investment philosophy, do not discuss unrelated topics (like insurance, short-term real estate, etc.).
• Recommended Tickers: Mainly recommends Nasdaq 100 index funds (QQQ and its equivalents in various regions).
• Long-term Perspective: Investing is a matter of twenty to thirty years or more; short-term fluctuations are like passing clouds. The fundamentals of the US economy and corporations remain strong.
• Disclaimer Emphasis: CLEC channel content is for reference only, for educational purposes, non-profit, and will not ask for remittances or provide private contact methods. Investment is high risk; be responsible for your own decisions.

III. Q&A Session

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CAD

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• Sharing:
  1. Recently traveled with friends, overcame concerns about spending, and experienced the joy of not watching the market and focusing on the present. She emphasized that once money is invested in the market, one should let go and execute the plan (e.g., dollar-cost averaging), then go enjoy life.
  • Teacher James’s comment: We will all be very wealthy in the future (adding three zeros to assets is common). Spend money wisely; you can spend when cash is ample (30% of total assets). If travel expenses would dip into core allocation cash, it’s better to sell a small amount of stock for travel, which actually reduces risk (lowers beta). Borrowing against pledged stocks for consumption is safer because it doesn’t touch the principal. For example, with 10 million in assets, if all in 00662, a major market crash could lead to bankruptcy; with 20 million in assets (10 million in 00662, 10 million in cash, and a 10 million loan), after an 80% drop, you’d still have 12 million (2 million in stocks + 10 million in cash), which is safer. CAD adds: The cash in an allocation (like the ‘3’ in 4-3-3) is part of the portfolio and cannot be spent随意, or it will disrupt the ratio. Spending should be done through pledging loans or by withdrawing according to the 2% rule.
• Question (None)

Overseas Loner

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• Sharing: Listener from Taiwan, 34 years old, with assets of 15 million TWD, has been investing in 00662 for about a year following the teacher’s method.
• Question 1: Current monthly income is about 50,000 TWD, annual income less than a million, not considered high in Taiwan. To retire early, should I switch to a higher-paying technical job (like a technician in the tech industry) to accelerate asset accumulation?
  • Teacher James’s reply: Work should primarily bring joy, not just money. High-paying jobs might sacrifice health and family. 15 million TWD is already very wealthy and will grow rapidly. If changing jobs, the primary goals should be health, happiness, and joy, not purely chasing money.
• Question 2: Tried leveraged funds (like TQQQ) but found their violent fluctuations psychologically unbearable, then switched to 100% unleveraged funds (00662). The teacher previously backtested that a 4-3-3 allocation could survive the 2000 dot-com bubble (80% drop). Is it because of such extreme market conditions that the 4-3-3 allocation appears superior? If future market volatility is smaller, might other allocations (like 100% 00662) be better?
  • Teacher James’s reply: The 4-3-3 is designed to seek maximum returns at the edge of risk (e.g., maintenance margin of 167%) and can barely survive extreme conditions. If backtested with the 2000 market, a 50% cash / 50% QQQ (with smart rebalancing into leverage during downturns) might perform comparably or even better than 4-3-3 because more cash means more safety. However, in a long-term bull market, 4-3-3 would outperform 50/50. Since the future market is unknown, it’s impossible to determine which allocation is definitively optimal. The core principles are: cash not less than 30%, leveraged funds not exceeding cash, and not exceeding unleveraged funds. Leveraged funds can be zero (e.g., 70% QQQ, 30% cash).

Watson

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• Sharing:
  1. Emphasizes the importance of learning CLEC investment philosophy, especially before stock pledging.
  2. This year, practically implemented the teacher’s advice by canceling long-held savings insurance policies, deeply realizing that insurance, real estate, and long-term bonds are not quality assets.
  3. Wrong decisions must be corrected immediately; correct ones should be persisted. Wealth growth is just a matter of time.
• Question 1: When calculating total assets to withdraw the annual 2% for living expenses, should funds borrowed via credit and invested in the market also be included in total assets?
  • Teacher James’s reply: Yes, they should be included. The principal and interest payments for the credit are part of living expenses, and it’s reasonable to use the 2% withdrawal to cover living expenses and loan payments.
• Question 2: If the market falls continuously for 10 years, and one still withdraws 2% for living expenses annually and performs “smart rebalancing” (investing the 2% cash into the market), would this deal a devastating blow to the asset allocation? Should the withdrawal percentage be reduced or rebalancing paused?
  • Teacher James’s reply: Real history (e.g., 2000-2009) was not a continuous 10-year decline but had ups and downs. It fell from 2000-2003, investing about 6%; rose from 2003-2007, cash flowed out; fell in 2008, investing 2%. In total, about 4 years of investment (8%). If an extreme 10-year continuous decline truly occurred, the cash in a 4-3-3 allocation might indeed be insufficient. If “smart rebalancing” is not done, there would be more cash when the market rebounds.
• Question 3: The 2% annual withdrawal benchmark: is it calculated based on total assets at the end of the previous year (e.g., December 31st), or on the initial total assets invested? Or adjust after assets have doubled?
  • Teacher James’s reply: It’s recommended to initially withdraw 2% of the initial total assets. After assets have significantly appreciated (e.g., doubled or severalfold), if one wishes to increase living expenses, a complete asset allocation replanning is needed (similar to the “Scenario 19” principle: first reserve enough cash to cover debts and decades of future living expenses, then allocate the remainder according to 4-3-3 or similar ratios).
• Question 4: Hong Kong HIBOR is very low recently (about 0.6%), total borrowing cost is about 1.5%. Can I borrow more than 20% (the teacher’s recommended pledging loan limit) from HSBC stock pledge loans to buy SGOV or BOXX (currently yielding about 4.3%) for arbitrage?
  • Teacher James’s reply: Yes. This arbitrage fund is an independent operation and does not change the allocation ratio of the original pledged portfolio. The borrowed money can only buy cash equivalents like SGOV or BOXX. The main risk is exchange rate (HKD appreciating significantly against USD, though constrained by the linked exchange rate system). HSBC does not accept leveraged funds as collateral.
• Question 5: What are the risks of products like BOXX? HSBC does not accept BOXX as collateral.
  • Teacher James’s reply: If HSBC doesn’t accept BOXX, use SGOV (if accepted). The main risk of BOXX and SGOV is liquidity risk in extreme market conditions (difficulty selling), which all assets (including stocks) share.

Rui

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• Question 1: Regarding understanding the 2% withdrawal rule in extreme cases. If a person has 100 million in assets and spends 2 million annually. If the market drops 50% to 50 million, can they still spend 2 million? Or, if someone starts retirement with 50 million when the market has already fallen from a high (100 million), can they live by the 2 million standard corresponding to the original 100 million asset base?
  • Teacher James’s reply: Yes. Having 50 million at the market bottom (e.g., March 2009) might have the purchasing power or sustainability equivalent to 100 million at the market top (e.g., 2000). So, someone retiring at a market low might achieve the same living standard with less principal.
• Question 2: Regarding career development. At 34, feeling financially free, somewhat迷茫 about work. Promotion means more responsibility but also potentially broader horizons. How did Teacher James view promotions (e.g., to VP) after achieving financial freedom?
  • Teacher James’s reply: Promotion should be decided by oneself, not the company. When you feel you have the capability for a higher position, even better than the current incumbent, opportunities will naturally come. One should not accept a promotion when unprepared, as it could lead to failure. Continuously learn and improve in the current role to reach the capability for the next level. If capability is there, promotion is good, allowing one to serve more people. One should be overqualified for the position before promotion.

Brian

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• Sharing: London prices are very high; one fish and chips costs 33 pounds.
• Question: If the US government devalues its currency, can stock pledging somewhat hedge this risk? Because assets are bought at a fixed price, while the value of debt decreases with currency devaluation.
  • Teacher James’s reply: Yes. When we borrow to invest, in a sense, we are also “printing money,” similar to government actions. We are borrowing future “trash” (potentially devalued currency) in exchange for current quality assets. If the USD devalues, the real value of our USD debt also decreases. This is a “borrow trash for assets” strategy.
• Sharing 2: Early investments were more aggressive (e.g., 60% QQQ, 20% TQQQ, 20% cash). Now, no longer adding new investments but focusing on increasing cash reserves, letting the existing portfolio grow naturally.
  • Teacher James’s reply: This is very good. Even if the initial cash ratio is high (e.g., 30%), leading to a lower overall Beta, as core assets appreciate significantly, the cash proportion will relatively shrink, and the overall portfolio’s “risk” (or growth potential) remains considerable. Cash provides a huge safety net and psychological comfort. A low Beta initially is fine; eventually, the ship (assets) becomes an aircraft carrier, and the lifeboat (cash) seems insignificant.
• Sharing 3: Read “Why Do So Many Incompetent Men Become Leaders?”, which mentions that incompetent people often manage to appear extremely confident in front of others. Engineers are typically rigorous and find it hard to make absolute guarantees, while some ignorant yet fearless managers charge ahead.
  • Teacher James’s reply: This is a personality issue. He himself is an “anomaly,” having done many different types of work. Just be yourself.

D

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• Question 1: “Do you become capable first and then start, or start first and then become capable?”
  • Teacher James’s reply: In terms of personal learning and cultivation (practicing skills), it’s definitely “start first, then become capable.” For example, learning to invest, you have to open an account first; you can’t wait until you’ve read all the books. But in the professional world (the “martial arts world”), you can’t get promoted first and then train; that will lead to failure.
• Question 2: Following the teacher’s advice, invested credit borrowed in Taiwan into the market (allocated proportionally to 00662, etc.). The rationale is: future inflation will decrease cash purchasing power, so it’s better to borrow and invest now, repaying with devalued money in the future. Is this logic correct? (Friends don’t understand.)
  • Teacher James’s reply: The logic is perfectly correct. We are “aliens,” they are “earthlings”; different ways of thinking.

Yao

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• Question 1: Regarding autonomous driving technology routes: Tesla (pure vision) vs. Waymo (LiDAR) competition outlook? Waymo’s development is steady but expansion is slow; Tesla’s FSD V12 is about to be released.
  • Teacher James’s reply: He personally uses Tesla FSD and has a good experience. Waymo’s expansion is too slow; if Tesla’s performance is comparable, its production and deployment scale will far exceed Waymo’s, and costs will be lower. Waymo’s outlook is not optimistic; it’s like rifles against tanks and cannons.
• Question 2: Corporate innovation and leadership: It seems companies where founders are still present (like Tesla, Nvidia, Meta) are more innovative, while companies led by professional managers (like Microsoft, Google) mostly adopt follow-or-acquire strategies.
  • Teacher James’s reply: Not necessarily. Microsoft under Nadella (not a founder) has performed excellently. Starbucks improved after its founder returned. The key is corporate governance and CEO capability, but the fate of large companies is complex; sometimes “even gods can’t save them.” IBM revived; Kodak and BlackBerry declined. Intel’s future is also uncertain.
• Yao adds: Google’s AI is strong, but it seems to be lagging in the AI race, and its search engine is threatened by OpenAI, etc. Apple’s Vision Pro is expensive with low sales; a professional manager (Cook) might be less willing to take risks than a founder (Jobs).
  • Teacher James’s reply: Google’s problem is its adherence to the search engine model, failing to revolutionize its integration of AI technology. This is similar to Kodak. He hasn’t used Google search for a long time, switching to OpenAI. OpenAI’s search experience far surpasses Google’s. As for various AI models, each has its pros and cons, like different tools; the key is to use them in the right place, not just compare who is “better.” Companies need the courage to abandon existing models and surpass themselves; otherwise, it’s “occupying a position without fulfilling its duties” (尸位素餐), which is the beginning of demise.

Maochang (王茂昌)

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• Question: Currently using a 4-3-3 allocation, receiving 2% for living expenses monthly through pledging. Will receive a salary of 20,000 TWD mid-month. Can I spend the pledged money first, and then invest the salary into the market when it arrives mid-month?
  • Teacher James’s reply: Yes. This 20,000 TWD salary can be invested proportionally (e.g., 60% 00662, 30% 00670L, 10% 00865B, or other suitable ratios). If you want to increase the living expense withdrawal amount in the future, a complete asset allocation replanning is needed.

Candy

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• Sharing (Detailed personal investment journey):
  1. Inspired by “Rich Dad Poor Dad” in early years, started investing and exploring on her own.
  2. Panic sold during the market crash at the beginning of the 2020 pandemic (sold TPTQQQ around $30+), suffered losses, missed the V-shaped recovery, deeply regretted it, and paid 50% tax.
  3. During the 2022 market downturn, thanks to previous lessons and the teacher’s philosophy, plus holding 25-30% cash, her emotions were stable, and she held on. Her husband also reminded her not to sell stocks out of fear.
  4. After the market stabilized in 2023, once considered liquidating everything to invest in CDs, but after rational analysis (not worried about money, economy recovering, holding good assets), chose to continue holding quality assets.
  5. During the April 2024 market pullback, remained calm, believing in economic fundamentals (employment, CPI, GDP, stable oil prices), and eventually welcomed the May rally.
  6. Expresses gratitude for the teacher’s guidance and the luck of fellow students to directly access a mature investment system.
• Sharing (Life insights): Financially free for many years (about 10 years), experienced travel, hobbies, etc., but now feels a bit lost about the second half of life, lacking clear goals. Young people having goals to strive for is a blessing.
  • Teacher James’s reply: Life doesn’t necessarily need grand meaning; “Whatever, it’s all fine, it doesn’t matter” is an important mindset. Find things that make you happy, like philosophical contemplation, observing the world (finance, politics, art, social phenomena, from minor car accidents to major wealth inequality). The entire world is a field for contemplation.
• Candy adds sharing: Once managed a poorly run orchard for nearly ten years. The time spent alone in the orchard brought her inner peace. Through dialogue with nature and deep thinking, she found answers to many significant life and investment questions, and these decisions later proved correct. Emphasizes the importance of self-reflection and “looking inward” in tranquility. Believes that in a state of extreme calmness and emptiness, answers will naturally emerge, as if connecting with a higher power.
  • Teacher James’s reply: Deeply resonates. He often talks to his garden and tomatoes, sensing their life force. The meaning of a tomato plant is to grow. A thousand-year-old sacred tree silently observes the changes of the world, indifferent to “meaning.” The things we cling to are insignificant on a cosmic scale; “there is no greatest.” Towards people and matters, including family relationships (with children, husband), maintain an attitude of “Whatever, it’s all fine, it doesn’t matter.” Love yourself, love others, but don’t demand a response.
• Question: About Bitcoin. Knows it’s digital gold, but missed it early on; now the price is high, volatility is large, and she’s unfamiliar with it. Can she allocate a small amount to Bitcoin ETFs (like 1-2%)?
  • Teacher James’s reply: Does not proactively recommend it. If one personally decides to allocate 1-2%, they bear the risk; it’s fine even if it goes to zero. However, the overall trend of digital currencies and stablecoins is beneficial for tech indices like QQQ. The US government is gradually regulating and co-opting the stablecoin market (e.g., Circle legalized, Binance paying a huge fine to become compliant), aiming to control the dominance of digital currencies. One reason Facebook’s Libra project failed was its peg to a basket of currencies, not just the USD, which was not in US interests. Tech companies can develop, but if they violate US interests, it’s illegal.

Dirk

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• Question: News says a large amount of US Treasury bonds will mature in July. Will this have a drastic impact on US dollar short-term bond ETFs held by Taiwanese investors (like 00865B) or the New Taiwan Dollar exchange rate?
  • Teacher James’s reply: Exchange rate fluctuations are “Whatever, it’s all fine, it doesn’t matter.” Behind this is a global currency war and financial revolution (digital currencies, stablecoins). The US plays a key role, strengthening the dollar’s position through measures like the stablecoin bill (a student mentioned Graham-Cassidy, the teacher didn’t correct but emphasized it’s a stablecoin bill), making US Treasuries more attractive. This is positive for the overall financial system; the dollar will remain strong. No need to worry excessively about 00865B. After this bill passes, US banks other than the central bank will also be able to print money (issue stablecoins), US Treasuries will be hotter, and interest rates will fall.

Other Scattered Points Mentioned by Students or Responded to by Teacher James:

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• HSBC Premier Stock Pledging: Requires Premier level (over 1 million HKD in assets). (Early discussion)
• Young Investor Allocation: 4-3-3 or 70/30 are both fine; cash not less than 30%. 4-4-2 (40% QQQ, 40% TQQQ, 20% cash) is very volatile, not suitable for everyone.
• HSBC Hong Kong Pledge Maintenance Margin: Relatively high, so 50% stocks / 50% cash might be a safer initial allocation (cash part can also consider SGOV/BOXX). Leveraged funds cannot be pledged at HSBC.
• IBIT/FBTC: Both are Bitcoin spot ETFs. IBIT (BlackRock) currently has larger trading volume; FBTC (Fidelity) is also an option.
• Stablecoin Bill (e.g., Genius Act / Graham-Cassidy related content on stablecoins): Expected to pass in the next month or two, will allow regulated US financial institutions to issue stablecoins, greatly invigorating the US Treasury market and dollar liquidity. This is a major positive for financial markets, an “atomic bomb-level financial explosion.”
• Definition of Money: JP Morgan was once asked about the money supply and retorted by asking for a definition of money first. Airline miles also count as a form of currency. Everyone writing an IOU is also printing money, as long as it circulates.

IV. Highlighted Quotes

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The market is often quite volatile due to news. But everyone should ignore it… Don’t let it affect your investment emotions, this is very important. – Teacher James

Context: Reminding students in an era of information overload to discern information and, more importantly, control emotions arising from short-term market fluctuations to avoid wrong investment decisions.

One’s life is not about pursuing how successful you want to be, but about avoiding failure. So, don’t do risky things, don’t take adventures. – Teacher James

Context: Explaining the core principle of investment and life, emphasizing that risk control and steady sustainability are more important than pursuing exorbitant profits.

Whatever, it’s all fine, it doesn’t matter… If you lower your needs, lower your desires, you become stronger. Being indifferent and unafraid of loss means you succeed; this is true wealth – not fearing loss, possessing the most. – Teacher James

Context: Sharing a philosophy of life and a method for inner cultivation, achieving inner strength and true abundance by reducing attachment to external things.

Correct investing doesn’t take time… If you can forget the market’s existence and let time make money for us, that’s the most powerful. – Teacher James

Context: Emphasizing the passive and simple nature of long-term investing; investors should focus on life, not constantly watch the market.

Taiwan’s lack of capital gains tax is encouraging, well, it means not giving long-term investors benefits, i.e., not encouraging long-term investors. …Moreover, this securities income tax and transaction fee are terrifying… Only retail investors will lose until they go bankrupt, still thinking they will win. – Teacher James

Context: Criticizing Taiwan’s stock market tax policy, arguing that while it’s named as a burden reduction, it actually harms retail investors through high-frequency trading fees and is not conducive to cultivating a long-term investment culture.

It’s good for young people to learn investing, but remember to take care of your main profession. Your main profession is not just about making money; work is also about serving others, it’s the meaning of life. – Teacher James

Context: Responding to a young student’s question about balancing career choice and investment, emphasizing the importance of one’s primary job and its social value.

Borrowing against pledged stocks for consumption, without spending cash, is safer. …If you get a margin call on your loan, that other person with 10 million (all in stock) would also be wiped out, they’d have no money either. – Teacher James

Context: Explaining why, even with cash on hand, borrowing against pledged stocks for consumption is sometimes a superior choice, as it maintains the integrity and growth potential of core assets, and comparing the safety of pure assets versus leveraged assets (with corresponding cash).

Life can have no meaning, why must life have meaning? It doesn’t necessarily have to have meaning, so not having meaning is the greatest goal. – Teacher James

Context: Responding to a student’s confusion about the meaning of life, proposing a transcendent view that one need not force a grand meaning onto life; living spontaneously and finding present joy is sufficient.

We are printing money just like the US government… Aren’t we issuing our stablecoins using our assets when we borrow money? …This is the highest level of capitalism – aggression. Of course, it sounds harsh, but it’s plundering. – Teacher James

Context: Responding to a student’s discussion on currency devaluation and pledged borrowing, pointing out that in an environment of inflation and potential currency devaluation, borrowing to buy quality assets is a wealth strategy similar to how the current financial system operates.

This (stablecoin bill) is a very important thing. The most important thing this year. Things like Trump’s tariff wars are minor issues… If this passes, I tell you, US Treasury interest rates will fall, and the US dollar will rise. – Teacher James

Context: Discussing the stablecoin bill being promoted in the US, believing it will be a crucial move for the US to consolidate its financial hegemony and invigorate financial markets, with an impact far exceeding other short-term economic events.

V. Summary

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In this CLEC investment and financial management course, Teacher James once again emphasized his consistent long-term investment philosophy and emotional management techniques, encouraging students to face market ups and downs and life’s vicissitudes with a transcendent attitude of “Whatever, it’s all fine, it doesn’t matter.” The course focused on discussing the strategic importance of the cash position (not less than 30%) in asset allocation, combined with in-depth analysis of stock pledging scenarios, aiming to help students build a more robust financial structure. The teacher also provided a profound analysis of Taiwan’s day trading policies, revealing their potential harm to retail investors. Furthermore, the course content broadly touched upon life wisdom such as work value, personal growth, meditation, and mindfulness, and prospectively explored emerging financial trends like stablecoins and their potential impact on the future world order, offering students a broad perspective and deep thinking beyond investment itself.