DeepSeek Causes Tech Market Turmoil: 3 Investing Lessons for the coming year
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There has been a significant ‘hoo-ha’ recently, due to the launch of DeepSeek, a new AI model from a Chinese company. Why all the ruckus?
The tech industry was shocked at how quickly and cheaply and how fewer resource was used compared to its’ rivals in the tech world, think Nvidia [dropped by 17% then regained 8.2%] and other major tech companies.
DeepSeeks’ philosophy has embraced open-source methods, pooling and sharing collective expertise and fostering collaborative innovation. This approach not only reduces resource constraints, but also accelerates the development of cutting-edge technologies.
China has always been seen as an ‘imitator not an innovator. But this different!! This is innovation, and not one of the Chinese researchers was educated overseas, all graduated from excellent Chinese Universities.
So, what does this mean for us the investors? Below is an excerpt from an article written by Annabelle Dickson.
There are 3 Lessons for the year ahead.
🔥 Lesson 1: Time in the market
Stay invested and focus on the long term. Attempting to time the market or waiting for clear economic signals often means missing out on early-stage recoveries. By maintaining a disciplined approach, investors can better position themselves to capture growth when markets turn upwards.
🙌 Lesson 2: Diversification is essential.
Investors who hedged their bets with diversified portfolios were better positioned to capitalise on sudden shifts, avoiding the pitfalls of backing a single runner and the risks of chasing fleeting performance.
💰 Lesson 3: Uncertainty brings opportunity.
Uncertainty is inevitable, but it can also create opportunity. By staying disciplined and focusing on log-term goals, investors can turn periods of market volatility into strategic buying opportunities.
To read her article in full [Reading time 5 mins]
https://www.betashares.com.au/insights/investing-lessons-2025
The long and the short of it all, stick to your plan. These guiding principles are three of many investing principles covered in the Financial Literacy element of my Money Makeover Course.
Another article pertinent to this topic is my Blog titled ‘The Best Investor’. It's a bit of a giggle but it's really true.
https://janmorrison.com.au/blogs/journal/the-best-investor
Enjoy!
Jan
💬 Have questions? Email me directly or book your free Discovery Call to start a conversation about your goals.
🌱 Ready for a transformation? Check out my Money Makeover Course and take the first step toward financial freedom today!