On April 27th, at 2 p.m. on a Saturday afternoon, a seminar titled “Embracing the Trend of Rate Cuts by the Fed! Using Sun Tzu’s Art of War to Win the Wealth Positioning Battle” was held in Room 203 of the Houston Overseas Chinese Education Center. The event was organized by the Houston Taiwan Business Association and featured a keynote speech by Wu Binghui, the manager of the Houston Branch of the First Bank of Taiwan. The event was attended by various dignitaries including Wang Yingrong, Director of the Overseas Chinese Education Center, as well as Vice Director Huang Yili, Overseas Chinese Affairs Commissioner Liu Xiumei, President of the Overseas Chinese Association of Southern USA, Zhang Qingwen, Vice President Pei Junli, former President He Zhen, President of the Taiwan Business Association Xu Shigang, former Presidents Zhang Yuanli, Zhang Zhijia, Li Xiong, Advisor Zhou Zhengxian, and other board members and members.
Wu Binghui expressed his personal affinity for studying Sun Tzu’s Art of War and how he utilized the teachings from the book to interpret strategies in the financial market. He emphasized the relevance of the financial market to our daily lives, highlighting the importance of understanding its impact. Wu mentioned that without financial markets, there would be chaos and unimaginable consequences. He explained that even if one does not actively invest, the interest rates in banks can still be affected by market trends and economic stimuli driving interest rate cuts.
During the seminar, Wu Binghui delved into three types of financial instruments: 1. Principal Protection: Checking accounts, savings accounts, fixed deposits, money market funds. 2. Appreciation Type: Investment accounts, financial advisory accounts, securities market stocks, securities, mutual funds, exchange-traded funds (ETFs), index equity funds, index bond funds (bond ETFs). 3. Hedging Type: Coverdell ESA/529 Education Fund, 401K/IRA Retirement Accounts, annuities, forward foreign exchange, futures, options, structured products, insurance, gold, cryptocurrency.
Wu Binghui explained that banks calculate costs based on market interest rates, which are determined by the Federal Reserve System. He highlighted the components of interest rates, including risk-free rates based on government bond prices, risk premiums, and reasonable bank profits. Interest rates have an inverse relationship with bond prices and a direct relationship with exchange rates.
In terms of investment strategies for financial products, Wu Binghui cited Sun Tzu’s strategies and the 631 rule to establish financial discipline for accumulating retirement savings. He recommended allocating 60% of daily necessary expenses, 30% for investment and financial planning, and 10% for risk management. He also discussed strategies for maintaining basic positions in principal protection products during low-interest rate environments, relating it to Sun Tzu’s Art of War.
Regarding stock market investment strategies, Wu Binghui emphasized selecting individual stocks based on overall market trends, applying insights from Sun Tzu’s Art of War on military momentum. He utilized chart analysis to provide a clear understanding of the principles and operations of various financial products to the attendees.
In conclusion, Wu Binghui introduced the First Commercial Bank, which has been in operation for 120 years, ranked 186 globally. As Taiwan’s overseas bank in Texas, offering a deposit benchmark of $250,000, he encouraged Taiwanese businesses to make use of the bank’s various financial products and services.