The recent announcement on AI chip restrictions has really brought a dark cloud into the market. As long as there’s no clarification, this dark cloud will continue to hover. Even Suncon has been downgraded from 4.10 to 2.50 by JP Morgan. That’s no small downgrade.
Which counters get hit most? Those with high PE with no clear earnings visibility. Yes, we can argue about RNAV, but RNAV evaluations are also based on assumptions. The assumptions then was a lot of interest especially in the area of data centers and the like, for Chinese businesses to circumvent US regulations and tariffs in the coming year.
This does not mean the potential for the SEZ is no longer there. But it has thrown a spanner in the works, for now
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Stock futures are little changed as Wall Street gears up for key data, earnings season: Live updates