The DeepSeek Disruption: A Long-Term Investment Perspective on AI, Market Volatility, and Global Economic Integration.

Hello, outstanding students of Diamond Ridge Financial Academy!

I’m Charles Hanover. Welcome to Diamond Ridge Financial Academy!

In this fast-changing era, we’re riding the wave of the Fourth Industrial Revolution. From AI to quantitative trading, from the digital economy to renewable energy, every tech breakthrough is quietly reshaping our lives and the way wealth is created. You’ve probably noticed the recent market swings—there’s both fear and opportunity. But it’s in these moments that the most valuable opportunities often lie hidden.

Whether you’re a beginner investor or a seasoned market veteran, I believe you’ll find new insights and inspiration here. Let’s dive into today’s learning and exploration!

Today’s global investment markets are witnessing a tug-of-war between bulls and bears. The key focus is on groundbreaking developments in AI and their profound impact on the economy and stock markets. The differences in performance between UK and US markets, especially in tech and traditional sectors, are particularly striking.

First, Trump’s remarks on DeepSeek grabbed global attention. This Chinese AI model, known for being low-cost and highly efficient, was described by Trump as a “wake-up call” for US tech. While he attempted to calm market concerns, global investors remain uneasy about the competitive edge this technology offers. Nvidia, a leader in US tech, saw its stock plunge 16.9% yesterday, highlighting fears over its competitiveness and business sustainability. This isn’t merely a short-term fluctuation; it could signal a major shift in the industry’s future.

The UK stock market performed relatively better, with the FTSE 100 index up 0.35%, thanks to its lower exposure to tech. Its heavier weighting in traditional sectors such as banking, oil, and pharmaceuticals helped it avoid the volatility that hit tech. Positive local news, such as strong earnings from Rentokil and AG Barr, also boosted sentiment. Amid a global tech sell-off, the UK market’s resilience has attracted increased attention from international investors.

The UK’s real estate market was another bright spot. London property transactions spiked due to expectations of higher stamp duties. However, this “rush to buy” trend might not last. Once the policy takes full effect, the market could cool down.

In the European market, although less involved in DeepSeek’s tech race, its lagging position in AI has sparked debate. European markets hit all-time highs today, partly due to their “immunity” to US tech turbulence. However, in the long run, the lack of leadership in technology may turn this relative strength into a short-lived advantage.

In the US, yesterday’s sell-off pressured the Nasdaq and S&P 500. However, Nvidia’s rebound in early Frankfurt trading today suggests that some investors view the market’s reaction to DeepSeek as overblown. This highlights the uncertainty in market sentiment, which could lead to further twists in the days ahead.

Policy and geopolitics also play a key role. The Trump administration clearly recognises the importance of AI competition. However, beyond words about leading the field, tangible support policies are still lacking.

Recently, the market shock caused by DeepSeek has thrown US stocks into panic. Many investors are questioning the future of AI, with some even believing that AI technology might lose momentum in today’s complex economic environment. However, this view is clearly short-sighted. If we deeply understand the connection between economic growth and technological innovation, we can see that every major tech revolution comes with some pain and volatility but ultimately drives massive productivity gains and advances in human civilisation.

While there is still a degree of fear in the market today, this is merely a short-term overreaction to AI’s development. Technological innovation has always been the driving force behind human progress. By analysing a few key factors of economic growth, we can see why the current market fluctuations not only fail to undermine AI’s potential but also present a rare opportunity for investors.

First, economic growth depends on institutional innovation and changes in how society is organised. Progress isn’t just about technology; it also requires systems that ensure smooth development. Looking back at history, the Magna Carta in 1215 established the principle of the rule of law, laying the foundation for modern civilisation. Later, the UK led the spread of modern ideas such as democracy, freedom, and equality, which set the stage for the First Industrial Revolution and brought unprecedented material wealth to humanity.

From the Industrial Revolution to the Information Revolution, each leap in technology has come with changes in how societies are structured. The factory system during the Industrial Era disrupted agriculture-based economies, and modern corporations brought together capital, technology, and labour to focus resources on the most productive areas. Today, the rise of the digital economy is driving new organisational models such as tokenised financing and decentralised autonomous organisations (DAOs), which are emerging as innovative ways to allocate resources.

Second, technology is a key driver of progress. Every industrial revolution has been marked by significant scientific and technological breakthroughs. The First Industrial Revolution moved humanity from an agricultural society to an industrial one, with inventions like the steam engine and electricity greatly boosting productivity. Wealth shifted from land to factories. The Second Industrial Revolution introduced electrification and the internal combustion engine, further increasing industrial productivity and creating new industries and business models. The Third Industrial Revolution, led by information technology, brought computers and the internet, transforming how we live and work while concentrating wealth in the tech sector.

Now, we are riding the wave of the Fourth Industrial Revolution, with emerging technologies like AI and blockchain reshaping the world and driving the transition to a digital economy. Wealth is shifting once again—from agriculture to industry, then to information, and now accelerating towards digital assets. This is the inevitable result of technological progress and human advancement. Those who can understand tech trends and innovate effectively will uncover incredible opportunities in this era.

Next is the effective allocation of resources. The key to economic growth lies in how limited resources such as natural resources, human capital, and financial assets are allocated to the areas where they can create the most value. This requires a combination of efficient market mechanisms, government regulation, and rational decision-making by individuals. Whether it’s nations, businesses, or other social organisations, they all play a role in resource allocation.

In the agricultural era, landowners combined land, labour, and capital to produce crops. During the industrial era, factory owners brought together machinery, raw materials, and workers to drive production. In today’s corporate world, companies use various systems to pool resources and talent to create goods and services.

Now, in the digital economy era, more and more tech projects are using token-based financing, efficiently connecting technology, talent, and capital in the digital world. This is a new and improved way to allocate resources, better suited to the needs of the digital economy, and it provides a stronger driving force for technological innovation.

Another key factor is globalisation and collaboration. In the digital economy, global connections are tighter than ever, and sharing technology and working together have become crucial for economic progress. The global flow of data, algorithms, and computing power has removed geographic barriers, enabling developers, businesses, and users around the world to share the benefits of technology and build the digital economy together.

While the DeepSeek event caused short-term market disruptions and negative sentiment, in the long run, it reflects the trend of global tech integration. It represents an attempt to challenge US tech dominance and could drive further breakthroughs and development in AI. This kind of global competition and cooperation will accelerate technological innovation, improve resource allocation efficiency, and ultimately promote shared global economic prosperity. Businesses and countries that actively engage in global collaboration and make good use of global resources will gain a stronger competitive edge in this era.

These basic principles of economic growth directly guide our investment strategies. That’s why short-term pullbacks in tech stocks present excellent buying opportunities, particularly for companies or projects with strong R&D and innovative ideas. Take Innodata (INOD) as an example. It’s a global provider focused on digital business processing, IT, and professional services, with broad applications and significant potential in the digital economy. After yesterday’s panic-driven selloff, INOD’s stock is near the $30.5 support level, suggesting it may be undervalued. Buying below $33 in small amounts is recommended to accumulate high-quality assets at lower prices and hold them long-term to benefit from the growth of the digital economy.

Another example is AQS, the token linked to our quantitative trading system. As a financing project that combines AI with trading, AQS has recently been on a strong upward trend due to positive public test data. During the last system upgrade, AQS’s price nearly tripled, demonstrating its technical strength and market potential.

This time, the token price is expected to rise to $3–5. If you’re interested in mid-term investments, it’s worth keeping an eye on it. Once the system completes testing and moves into its pre-launch phase, AQS is likely to experience another wave of growth. The success of AQS highlights how the combination of AI technology and traditional finance creates immense value. At the same time, the quantitative trading system provides us with better investment strategies.

The market has been quite volatile lately, and both institutions and individual investors have experienced some level of drawdown. This isn’t unusual; it reflects the push and pull between technological breakthroughs and regional economic policies. Financial markets often react unpredictably in a world driven by both economic growth and tech advancements, giving investors more to think about.

Our quantitative trading system has shown remarkable performance even in this complex environment. It not only generates swing trading strategies based on market volatility but also identifies arbitrage opportunities through the interconnection of different trading assets. Despite the sharp market fluctuations, most participants who strictly followed the system’s signals have seen solid profits. This proves, once again, the system’s accuracy and reliability.

Recently, many students have asked if we’ll continue trading together after the second round of public testing, especially those who joined the first round. Some have chosen to withdraw their profits, while others have reinvested more funds, hoping to grow their returns further using the system’s signals.

The answer is yes; we will keep working together and aim even higher. Trading strategies and approaches can be adjusted based on market conditions and your needs. Still, our core goal remains the same: to refine and improve the system while helping you achieve steady returns in complex markets.

From the financial academy’s perspective, our partnership with students is a win-win. For instance, our free online investment courses, which teach investment knowledge and explain the principles behind the quantitative trading system, are designed not just to offer learning opportunities but also to attract skilled investors to participate in the system’s public testing. Through your feedback and real-world trading, we continuously improve the system’s performance, laying the groundwork for its launch. This collaboration allows us to help you generate profits while also boosting the system’s development and adoption. With the system’s eventual release, its visibility and acceptance in the market will grow significantly.

Lastly, it’s worth mentioning that Diamond Ridge Asset Management’s quantitative fund is expected to officially launch in May. This fund, built on the core technology of the quantitative trading system, aims to provide a professional, efficient investment tool for a broader range of investors. We believe this launch will attract widespread interest and further establish the system’s market position. For you, this means not only continued profit opportunities through the system but also the ability to diversify your assets through the fund. This collaborative model allows students, the system team and the fund managers to all benefit, creating a win-win situation for everyone involved.

Even though the global situation is complicated and high inflation remains a challenge for many countries, we firmly believe in the power of technological revolutions. Breakthroughs in AI are bringing new growth opportunities to the global economy, especially in digital business, automation and data analytics. For investors, seizing this trend isn't just about short-term opportunities but a key to future success. I believe that in this global tech race, the UK and Europe will actively take part and compete for leadership in these cutting-edge advancements.

From a personal perspective, I have my own dreams and goals. In this wave of technological change, I hope to use my years of experience and resources to create value and make a positive impact. Inspired by the great investor John Templeton, I hope to establish a charitable fund within my lifetime. This would not only give back to society but also serve as a commitment to the future. Through this fund, I aim to help those who genuinely need support, no matter where they are in the world, while also driving progress in science and technology. By leveraging the power of finance, I hope to contribute to the development of breakthrough innovations and the long-term prosperity of humanity.

I firmly believe that technological progress is never the work of a few; it's a shared opportunity and challenge for all of us. On this journey, I'm not just willing to invest my resources but also ready to walk this path with you. I believe every investor has the potential to play a positive role in this era. We can all add momentum to this technological revolution through rational decisions and bold actions. That's why I'm more than willing to offer investment guidance, helping every student capture the opportunities of our time, achieve financial goals and contribute to advancing technology and society. I hope to reach more agreements with you in the discussions ahead, inspire each other's wisdom and potential, and find new opportunities to work together. Let's move forward together, not only striving for personal success but also building a brighter future for everyone.

As the second round of public testing draws to a close, we've received a lot of feedback from students eager to keep using the quantitative trading system. We'll soon start a follow-up process to improve system performance and meet these needs. This follow-up will focus on a few key goals: First, to understand users' real experiences with the system and gather feedback to ensure it continues to meet investor needs. Second, to better understand users' views on the current market and their investment suggestions while helping them address practical challenges, and finally, to work with users to plan their 2025 investment strategies. This follow-up isn't just a system performance test; it's also a chance to provide personalized support to our users. By incorporating their feedback, we aim to make the system smarter and more tailored. Together, we'll ensure every user can make the most of their opportunities in 2025 and beyond. This is not just a test of the system's performance; it's also an important opportunity to provide personalized services to our users.

Finally, I want to thank everyone for your support and trust in this public test of the quantitative trading system. Your active participation and valuable feedback enable us to improve the system’s performance and advance quantitative trading technology. This test is not just about proving the technology; it’s the start of our collaboration. For those who have already received the $2K public test fund, I encourage you to make the most of this opportunity and actively participate in trading. By engaging in real market operations, you’re not only helping the system adapt to changing market conditions faster but also increasing your own potential earnings. This win-win approach is key to refining the system and an excellent way for participants to get familiar with this advanced tool.

More importantly, your deep involvement during the public test will lay a strong foundation for the future. Once the system is officially launched, investors who are already familiar with its functions and operations will have a clear edge; whether it’s trading efficiency or seizing market opportunities, you’ll be ahead of the curve.

The future of quantitative trading is more than just upgrading a tool; it’s about adopting a new way of thinking about investing. I’m confident that when the system officially launches, it will not only bring greater returns for everyone but also set a new standard in the global market. Thank you again for your efforts and support; let’s look forward to all the possibilities this system will create!

Before we wrap up tonight, please think about:

1. In the long run, is DeepSeek a positive or negative factor for the AI industry?

2. What kind of investment platform is Diamond Ridge Financial Academy, and what investment services can it offer you?