Unlocking Investment Success: Harnessing Technology and Market Trends

Good evening, everyone!

I’m thrilled to be here with you at Diamond Ridge Financial Academy to explore cutting-edge investment knowledge. I hope my insights can inspire you and help you make more confident and profitable investment decisions!

Last night, we discussed the UK real estate market and the impact of the stamp duty reform. While the policy has boosted transaction volume in the short term, higher taxes might dampen demand in the long run, potentially leading to a drop in property prices. For investors holding multiple properties, this could be a good time to lock in some profits.  

We also covered how to build a diversified, high-return portfolio by combining tech stocks and crypto. By analyzing the current economic climate and recent trends, we saw that tech stocks and crypto each have their strengths, which can help reduce risk and boost returns when paired in a portfolio.

Looking ahead, we’ll focus on leveraging tech trends and the advantages of different mainstream investments to help you build a low-risk, high-return portfolio. We’ll dive into the potential and risks of tech stocks and crypto and fine-tune strategies based on market changes to achieve stable, long-term gains.  

Tonight, we’ll continue by exploring the traits of high-growth stocks and how to spot opportunities for short-term gains. But before we dive in, let’s first take a look at today’s market trends and the latest updates.

Today, the UK stock market had a strong performance with the FTSE 100 closing up 0.56%, beating expectations. The main drivers were the strength in energy and banking stocks, which boosted overall market confidence.  

Energy stocks rose on optimism about the upcoming OPEC+ meeting, with investors feeling positive about future oil prices. Banking stocks also climbed, reflecting confidence in the UK’s economic outlook and expectations that interest rates might stay high.  

In addition, strong earnings reports from companies like Marston’s and SSP Group added more momentum, showing signs of recovery in the hospitality and leisure sectors.

Even though the BRC report showed retail sales in Nov fell by 3.3%, pointing to pressure on consumer spending, data from Barclays indicated an increase in entertainment spending. This suggests that some areas still have growth potential.  

Another key factor is the booming AI industry, which has injected fresh energy into the market. Investors are optimistic about how AI technology could create new opportunities across industries and drive growth for related companies.  

Overall, while some sectors face challenges, the strong performance of energy and banking stocks, solid earnings from select companies and new opportunities in the AI space have all combined to drive a positive day for the UK stock market, leaving investor sentiment on the optimistic side.

Recently, the UK stock market has been on a strong run and Rolls-Royce has surged beyond expectations, with profits already exceeding 10%. This is mainly because Rolls-Royce represents the best of British manufacturing. As the UK economy improves, its stock naturally benefits. Plus, Rolls-Royce’s leadership in aviation, coupled with the unstable situation in the Middle East driving up demand for aviation technology and products, has given the company new growth momentum. On top of that, Rolls-Royce has made solid progress in smart manufacturing, further boosting its potential for future gains.

However, from a technical perspective, Rolls-Royce’s stock price has now reached a historical resistance level (as shown in the chart), which increases the risk. For those holding a large position, it’s a good idea to lock in some profits now and wait for a pullback before considering another entry. If you need help deciding how much to sell or at what price, feel free to message me.

Rolls-Royce’s success is not just about catching the right trend but also about timing the stock’s low point perfectly. Using our quantitative trading system, we recommended buying on Nov 26 at £5.35, which was the exact low of that phase. Right after, the stock began a 4-day rally.

This shows that choosing the right trend and nailing the buy-in point are key to successful investing. Rolls-Royce capitalized on the demand in UK manufacturing and the AI-driven tech revolution. By leveraging our trading system to spot the ideal entry point, we achieved impressive returns.

To understand the essence of making money, investing is all about earning profit from price fluctuations. When it comes to stocks, there are two main ways to profit, dividends and price movements. For most investors, it’s the price swings that bring in the real gains.

Stock prices fluctuate because stocks are liquid assets, and their value changes with company performance updates and major policy events. Several factors drive these movements:  

Company outlook: Whether a company has a promising future or operates in high-growth industries like AI or renewable energy influences investor confidence and stock prices.  

Performance and profits: A company’s profitability is key. Strong earnings and consistent profit growth usually drive stock prices higher. On the flip side, weak performance or declining profits tend to pull prices down.  

Policy changes: Government policies, like tax or industry regulations can impact business operations and by extension, stock prices.

Take Super Micro Computer (SMCI) as an example. In 2023, SMCI delivered solid results with $6B in revenue and $1.5B in net profit. But in 2024, global economic slowdown and reduced chip demand caused a dip, with revenue falling to $5.5B and profit down to $1B. On top of that, SMCI hasn’t paid dividends in recent years, leaving investors reliant solely on price movements for gains.

In 2024, SMCI faced major setbacks, including delayed financial reports and the resignation of its auditor. This led to a sharp drop in stock price, from $50 at the start of the year to around $20 by Oct. These issues highlighted concerns over the company’s governance and financial management, shaking market confidence.  

However, our chief analyst, Hanover with 30 years of experience identified SMCI’s long-term potential in AI development. He accurately predicted that short-term events wouldn’t derail its future growth. In mid-Nov, he gave a strong buy recommendation.

Recently, after SMCI announced plans to replace its auditor and regain Nasdaq compliance, the stock surged. Even those who bought in at $25 saw over 50% gains. This shows how accurate analysis and understanding market trends can help investors thrive in a volatile market.  

The successes of Rolls-Royce and SMCI prove that as long as there’s price movement, there’s opportunity to profit. The key is spotting long-term growth trends and buying at the right time during market dips.

It’s not just in stocks, crypto works the same way. Recently, Ripple (XRP) has seen a big rally thanks to favorable policies (see chart). Investment giant WisdomTree officially filed for an XRP spot ETF with the SEC, sparking optimism among investors and boosting confidence in XRP’s future.  

The crypto market is highly volatile, but that also means there are plenty of chances to make money. More importantly, it shows how much technology and policy can impact asset prices. XRP’s recent surge is yet another reminder, if you want to make profit, you need to spot trends in tech innovation and buy at the lows.

At its core, investing is about taking advantage of price fluctuations. Behind those fluctuations lies the market’s perception of an asset’s value. Prices move because of changes in market sentiment, capital flows and a company’s fundamentals.  

In the short term, asset prices might deviate from their true value, but over time, they tend to return to it. Smart investors focus on the fundamentals and trends, hunting for undervalued assets when prices dip.  

Price volatility comes with both risks and opportunities. Great investors know how to spot undervalued assets during market pullbacks and sell at the highs when the market overheats.

Whether it’s stocks or crypto, making real profits depends on spotting future trends. Emerging sectors like AI and the digital economy are set to remain hot investment themes for years to come. So, whether you’re new to investing or a seasoned pro, sticking to major tech trends and using tools like quantitative trading systems to time your buys can lead to bigger and more consistent returns. That’s exactly why we’ve been recommending tech stocks and crypto lately as they align with these massive growth opportunities.

To help everyone better understand investment patterns and use investment tools to achieve greater returns in the market, Diamond Ridge Asset Management has specially launched an online investment course. The course aims to help participants gain a deep understanding of the principles and applications of quantitative trading as well as learn to make investment decisions using quantitative trading systems. At the same time, we hope to take this opportunity to introduce our company's quantitative trading fund products, fostering mutual collaboration in the investment market for shared success.

Additionally, we encourage more participants to join the internal testing of our Quantitative Trading System AI 5.0. Together, let's advance quantitative trading technology and create greater profits.

That's all for tonight's session. I hope this sharing helps you understand the investment opportunities and profit-making methods in the era of technological revolution. In the next class, we will teach you how to identify buy signals at stock price lows using technical analysis. If you have any questions about stocks, crypto, forex or want to build a diversified portfolio, feel free to reach out to me anytime!

From tonight's lesson, please take some time to think about:

1.Where are the future investment trends?

2.What are the main sources of profit in the investment market?