AI Overview
Nvidia CEO Jensen Huang is facing an escalating corporate and national security scandal after reports revealed an extramarital affair with Alice Huang (no relation), an executive at data company Megaspeed whom U.S. intelligence suspects is a Chinese spy.
What Reports Say Trump Knew
Trump's Response and Position
Nvidia and Market Impact
Before Jensen Huang boarded Air Force One en route to Beijing, the president was reminded of intelligence showing that he was in a relationship with a woman believed to be a Chinese spy.
https://www.nytimes.com/2026/11/10/us/politics/trump-china-trip-nvidia.html
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Thanks, Mike! Crazy stuff!
One lesson the crash in NVDA, INTC, DELL, and other chip or PC stocks tells us is that it isn’t wise to invest the majority of one’s assets in any one, two or even three or more highly volatile tech stocks. Try to hold down investment in any one stock, especially tech, to <5%. If you do and it were to crash, at least you wouldn’t be facing a serious decline in net worth.
OTOH, having a good % in the broader stock market, including mutual funds, for long term is fine imho as long as one also has a decent amount in more conservative stuff like high dividend stocks, preferred stocks, bond funds, bank MM/CDs/savings/checking, real estate, and even a portion in a diversified commodities basket if one chooses to. One needs to be able to live off of the more conservative assets so as to avoid the chance of being put into a position to have to sell stocks after they fall dramatically. It is better to try to hold onto the stocks that have dropped a lot until at least they have recovered.
If one isn’t in the stock market, one of the best ways to enter for the longterm is to dollar cost average over a good # of installments. That way if the market were to fall a lot after you make your first buy, you’re not so much behind the 8 ball and can then make the next stock investment at a much lower price.
I guarantee you that the value of this advice is at least the price you had to pay to receive it. <G>.
Any wild guess as to where NVDA will bottom out and thus where would be a good entry point? I don’t own any outright although I and many others do indirectly own it via tech/Nasdaq based mutual funds.
Larry,
That was some,out standing advice which has worked extremely well during most of our lifetimes.
My contention here is that this place in time is unprecedented with unique risks Those have already been outlined numerous times here.
With regards to Nvidia. This is a Black Swan Event! Those are almost impossible to predict and this one WAS impossible to predict.
Nvidia is now trading NEWS. This area is not my area of expertise but a market that went parabolic with a busting AI bubble and this devastating news is causing liquidation of over leveraged longs assigning extreme valuations in a market that couldn’t keep going parabolic\exponential in unsustainable fashion. When bubbles break, those markets can fall much faster than they went up. Each one is different.
there has never been one like this so there are no analogs. The news is in charge not the valuations. 2027 could feature a heck of a battle between the president of the stock market and his R enablers/supporters and the Ds that just received the most,profound mandate in history from Americans to stop them, reverse their agenda and hold them accountable for their corruption and ruinous policies wrecking our country and wrecking the world.
The news could get pretty crazy and the stock market could be entirely driven by the unprecedented news in 2027. The last month has just been a sample of what could be coming.
But here’s the thing. I can’t know this. How it shapes up specifically will probably be extraordinary different than what I think.
But I do know some things for sure.
2027 is going to be an unprecedented year in many realms because of how the unprecedented table has just been set. With that extreme uncertainty will come extraordinarily high risks from a vulnerable stock market.
My position has always been that its bad judgment to sink new money into an over valued market when the downside risks are near the highest in history.
Fear of missing out on gains does not justify taking such an extreme risk. Assuming that everything will be ok because it was in the past is pure denial of the unprecedented reality.
Stock brokers(that make a living on commissions) trying to sell you stocks based on past performance and people with tons of money in the market are all MEGA biased here.
2027 is not going to be like any,other year. The worst that can happen to your money in no risk investments in 2027 is that your rate of return is low. the best thing WHICH WILL happen is that you will keep ALL of your starting balance +that interest/return.
In the stock market, the downside risk, especially to new money at these levels is tremendous. Just be aware of that.
Anybody selling your stocks right now based on the last 15 years of out performance or the last XX years with the assumption that its always a good time to buy stocks and that 2027 doesn't matter to a 10-20 year investment is full of crap.
The entry point DOES matter in a market like this. The risk DOES matter in a market like this.
That's only because 2027 stands out as having unprecedented risks and no prior analogs except possibly during the 1970s, during Watergate but inflation was MUCH higher then and the tech sector was nothing like this.
And the battle between Donald Trump +Rs against the Ds(with their strong mandate), majority of Americans and the rule of law could generate unpredictable NEWS.
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AI OverviewA black swan event
is an extremely rare, unpredictable occurrence that carries a massive, game-changing impact and is only falsely understood as predictable after it happens. [1, 2, 3]The concept was popularized by statistician and former trader Nassim Nicholas Taleb in his 2007 book The Black Swan. The term itself derives from the old Western presumption that all swans were white—an assumption shattered in 1697 when Dutch explorers discovered black swans in Australia
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Black Swan Theory
