Aditi Mittal

Kirti Rathod


Pursuing Economics, and deep-diving to bring you A1 writings...


Riya Bhatia


> At the 2023 World Robot Conference, it was shown that China's use of robots in manufacturing has significantly increased, with "robot density" going up to 392 from just 68 in 2016. This increase indicates that robots are taking over many jobs previously done by people. China is using robots to address challenges like its aging population, to boost the quality of its products, to grow its exports, and to deal with trade pressures from the US.

In Dongguan, a city known for its intense industrial activity in southern China, the traditional manufacturing environment is undergoing a significant change. The once common sight of noisy factories filled with rows of workers, immersed in the smell of smoke and sweat, is becoming rare.

Today, the manufacturing floors that used to employ hundreds of thousands of workers have been replaced by industrial robots. These robots, capable of performing multiple functions, have taken over the tasks of several factory departments. As a result, only a small team of mechanics and engineers is needed to manage these automated systems.

A long time ago, factories started using robots because it helped them save money by not spending as much on paying workers. Banks were happy to lend money to buy these high-tech robots because it meant businesses didn't need to use their own money all at once.

#### Demographic Challenges and Government Response

Meanwhile, the government changed the rules that used to limit families to only one child, hoping people would start having more kids. But, they discovered that young couples didn't really want a second child, and many women didn't want to have children at all. In India, the situation is different because there are many young people.

#### Addressing Labor Shortages with Technology

In China, the number of people who are at the right age to work, meaning those between 16 and 59, is decreasing. There were 875.6 million people in this age group in 2022, down from 896.4 million in 2019. At the same time, the number of people older than 65 went up to 209.78 million from 176 million in 2019.

This drop in the working-age population, partly due to the one-child policy, is causing a shortage of workers in industries. China is getting older, and soon there won't be enough people to work. The country is looking at using humanoid robots as a solution. The government's technology ministry has made a plan to start mass-producing these robots by 2025. They want to create new technologies and make sure there are enough important parts for these robots to help with the worker shortage.

#### Expanding Robot Use Across Sectors

By 2027, humanoid robots are expected to become a key driver of economic growth in China. The country plans to significantly enhance robot technology, establish a secure and dependable supply chain for robot manufacturing, build an industry that can compete globally, and achieve a level of overall capability that matches the best in the world.

In 2021, China surpassed the United States to rank as the fifth most robot-intensive country globally, as per the World Robotics 2022 report.

The government has urged sectors like healthcare, domestic services, farming, and logistics to increase their use of humanoid robots. These robots are seen as the next big technological breakthrough, similar to the impact of computers, smartphones, and electric vehicles. They are expected to drastically alter both the production processes and daily life, potentially changing the global industrial landscape.


At the 2023 World Robot Conference, it was shown that China's use of robots in manufacturing has significantly increased, with "robot density" going up to 392 from just 68 in 2016. This increase indicates that robots are taking over many jobs previously done by people. China is using robots to address challenges like its aging population, to boost the quality of its products, to grow its exports, and to deal with trade pressures from the US.

China's Robot Revolution: Tackling Quality and Labor Shortages


> Investing isn't a one-size-fits-all endeavor.

One increasingly popular method is the bucket strategy, which divides investments into distinct categories or "buckets" based on different factors. Each bucket corresponds to a specific financial goal and timeframe, tailored to individual circumstances, risk tolerance, and objectives. Here's a breakdown of three common buckets:

#### Safety Bucket:

This bucket serves as an emergency fund or cash reserve, housing liquid or easily accessible assets. It's earmarked for unforeseen expenses or short-term financial goals. Typically, investors choose safe options like liquid/short-term funds or term deposits to ensure stability and liquidity. Ideally, 6-18 months of cash flow should be reserved in this bucket.

#### Medium-Term Bucket:

Designed for medium-term financial goals spanning 3-7 years, such as purchasing a home or funding education. Investments in this bucket encompass a mix of assets like stocks, bonds, ETFs, AIFs, PMSs, and mutual funds. The aim is to balance growth with market volatility, aligning with typical market cycles to prevent asset liquidation during short-term fluctuations.

#### Long-Term Bucket:

This bucket focuses on retirement planning, with investments spanning over seven years. It allows for higher risk tolerance, featuring assets like diversified stock portfolios, long-term bonds, real estate, PMSs, and AIFs. While offering potential for higher returns, these assets may also exhibit volatility or illiquidity, necessitating careful planning of the time horizon.

Bucketing not only aids in cash flow management but also enhances risk-adjusted returns. There are two primary approaches to bucketing: time-based and asset-based. Time-based bucketing aligns risk and liquidity with predefined goals, while asset-based bucketing diversifies across asset classes to manage risk and liquidity.

#### Benefits of the Bucket Strategy:

1. **Goal-Oriented Approach:** Aligns investments with financial objectives, guiding asset allocation and strategies for each bucket.
2. **Risk Management:** Segregates investments based on risk tolerance, safeguarding short-term needs while pursuing growth in long-term buckets. Diversification minimizes correlation, protecting against downside risks.
3. **Psychological Comfort:** Provides reassurance during market volatility, ensuring short-term needs are covered, and allowing investors to navigate downturns with confidence.

The bucket strategy offers a structured, goal-oriented approach to investment management. It empowers investors to manage risk, liquidity, and long-term growth effectively. Regular review and rebalancing are essential to adapt to evolving financial circumstances and market conditions, while avoiding biases towards specific assets or sectors. Ultimately, it empowers investors to take control of their portfolios and pursue their financial goals with confidence.


One increasingly popular method is the bucket strategy, which divides investments into distinct categories or "buckets" based on different factors. Each bucket corresponds to a specific financial goal and timeframe, tailored to individual circumstances, risk tolerance, and objectives.

The Bucket Strategy: A Tailored Approach to Investing


> Trading, a realm of probabilities rather than certainties, thrives on the slightest edge to stay ahead of the crowd. Let's explore a concept from physics known as chaotic attraction to shed light on a potential advantage for traders.

In physics, chaos theory observes how phenomena gravitate towards certain patterns despite apparent randomness. Similarly, in trading, prices often exhibit a pull towards the mean or average. Beyond physics, there's a behavioral aspect at play. Traders with even a rough estimate of when prices might reverse hold a significant advantage. Profits soar when traders anticipate reversals early, capitalizing on the early mover advantage. This strategy can augment profits in swing trades.

### Unveiling the Strategy

**1. Setting the Stage:** Begin by analyzing the daily chart of any traded security, plotting at least six months or longer of data. Overlay a month-long moving average (20 trading days) to smooth out price fluctuations. This moving average serves as a proxy for average holding costs. As long as prices remain above this average, retail traders feel no urgency to sell.

**2. Recognizing Patterns:** Notice how prices tend to deviate from the moving average by a quantifiable degree before reverting. For instance, a price rise of 10-12% above the average often precedes a reversal. The key lies in identifying consistent peaks and troughs relative to the moving average. Even after a decline, prices may not halt precisely at the average, indicating further potential for reversals.

**3. Applying the Strategy:** Armed with this insight, traders can optimize capital allocation. While not necessarily exiting long positions when prices surge, traders refrain from fresh buying and remain prepared to short at the first sign of weakness. This approach proves effective across various market conditions and asset classes, facilitating well-timed purchases after significant price declines.

### Key Takeaways

- **Simplicity is Effective:** While more complex mathematical models exist, the moving average method remains accessible and effective for retail traders.
- **Versatility Across Timeframes:** Whether analyzing daily or weekly charts, this strategy offers insights for both swing trades and long-term investments.

In conclusion, while trading is inherently complex, leveraging simple yet powerful strategies can yield substantial returns. Embrace the insights shared here, and may your trading journey be profitable and rewarding.


Trading, a realm of probabilities rather than certainties, thrives on the slightest edge to stay ahead of the crowd. Let's explore a concept from physics known as chaotic attraction to shed light on a potential advantage for traders.

Showing posts from growth tag

China's Robot Revolution: Tackling Quality and Labor Shortages

The Bucket Strategy: A Tailored Approach to Investing

Improve price reversal forecasting game, and take get advantage