Buy a Nifty 6150/6100 Put Spread:
Payoff of Rs. 1,627.50/- for an outlay of Rs. 872.50/-
Author: shyam
Creativity is just connecting things
Mark Twain:
When a great orator makes a great speech you are listening to ten centuries and ten thousand men — but we call it his speech, and really some exceedingly small portion of it is his.
Salvador Dalí:
Those who do not want to imitate anything, produce nothing.
Mark Twain on Plagiarism and Originality: “All Ideas Are Second-Hand”
The Persistence of Poverty
Not only does poverty make it difficult to focus the mind on multiple pressing issues and distort the process by which we prioritise them; but also the very nature and quantity of these issues reduce the motivation to even start trying.
One conclusion I think can be soundly drawn from these ideas: any traditional notion of “tough love” or “getting tough” on lazy poor people that blames them for their lots in life while downplaying their socioeconomic context is, to a first and second and third approximation, bullshit.
Poverty Thoughts
Poverty is bleak and cuts off your long-term brain.
I will never not be poor. It’s not like the sacrifice will result in improved circumstances; the thing holding me back isn’t that I blow five bucks at Wendy’s. It’s that now that I have proven that I am a Poor Person that is all that I am or ever will be. It is not worth it to me to live a bleak life devoid of small pleasures so that one day I can make a single large purchase. I will never have large pleasures to hold on to.
Why I Make Terrible Decisions, or, poverty thoughts
America: The swing of the pendulum between Capital and Labour
1974 would mark a fundamental breakpoint in American economic history. Productivity has increased by 80%, but median compensation (wages plus benefits) has risen by just 11% during that time. The middle-income jobs of the nation’s postwar boom years have disproportionately vanished. Low-wage jobs have disproportionately burgeoned. Employment has become less secure. Benefits have been cut.
The Wolf of Wall Street
Meet Jordan Belfort: a white-collar crook who duped innocent investors to finance an insatiable greed. Belfort was convicted of scamming more than $100 million throughout the nineties to finance a hedonistic paradise.
After all, it wasn’t every firm that sported hookers in the basement, drug dealers in the parking lot, exotic animals in the boardroom, and midget-tossing competitions on Fridays.
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The Nifty ended the month -1.95% (-3.50% in USD terms)
Index Performance
Banks dragged while midcaps rallied…
Top Winners and Losers
Cyclicals caught a bid and quite a few stocks went parabolic…
ETFs
| INFRABEES | +1.91% |
| JUNIORBEES | +1.40% |
| GOLDBEES | +0.36% |
| NIFTYBEES | -1.84% |
| BANKBEES | -2.47% |
| PSUBNKBEES | -3.08% |
Month-on-month, PSU banks still sucked while gold treaded water…
Yield Curve
Rates drifted up…
Interbank Rates
Zooming out to look at the big picture:
Sector performance
Investment Theme Performance
| Quality to Price | +15.63% |
| Balance-sheet Strength | +3.97% |
| Growth with Moat | +3.39% |
| Financial Strength Value | +2.30% |
| Magic Formula Investing | +1.97% |
| Market Fliers | +0.19% |
| Momentum 200 | +0.14% |
| ADAG Mania | +0.09% |
| Market Elephants | -0.80% |
| Efficient Growth | -1.61% |
| Enterprise Yield | -1.62% |
The simplest Value Theme, Quality to Price, out-performed Momentum. Typical when markets are gyrating and momentum algos can’t latch on to a trend…
Thought to sum up the month
Techpinions’ article on why Microsoft is failing has a number of quotable quotes:
If you don’t make a total commitment to whatever you’re doing, then you start looking to bail out the first time the boat starts leaking. It’s tough enough getting that boat to shore with everybody rowing, let alone when a guy stands up and starts putting his jacket on. ~ Lou Holtz
It is better to run back than run the wrong way. ~ Proverbs
Motivation alone is not enough. If you have an idiot and you motivate him, now you have a motivated idiot. ~ Jim Rohn
In this business, by the time you realize you’re in trouble, it’s too late to save yourself. ~ Bill Gates
Its a wonderful read.
Source: Microsoft: Failing By Design
The Nifty shot up +3.01% (+4.05% in USD terms) this week. Midcaps and banks led the way…
Index Performance
Top Winners and Losers
| BHEL | +14.00% |
| CROMPGREAV | +15.70% |
| JPASSOCIAT | +16.16% |
| APOLLOHOSP | -4.57% |
| MPHASIS | -3.21% |
| BHARTIARTL | -2.65% |
JP Associates did a parabolic up-move… next stop: infinity!
ETFs
| BANKBEES | +4.50% |
| NIFTYBEES | +2.86% |
| INFRABEES | +2.41% |
| PSUBNKBEES | +2.30% |
| JUNIORBEES | +1.94% |
| GOLDBEES | -0.14% |
Banks stole the show, followed by infrastructure… the market might be smelling a turnaround and likes it!
Advancers and Decliners
Can you spot the small uptick in sentiment?
Yield Curve
Interbank Rates
Investment Theme Performance
| Market Fliers | +5.76% |
| ADAG Mania | +5.01% |
| Quality to Price | +4.55% |
| Growth with Moat | +3.24% |
| Momentum 200 | +2.93% |
| Enterprise Yield | +1.82% |
| Velocity | +1.80% |
| Long Term Equity | +1.78% |
| Magic Formula Investing | +1.35% |
| Efficient Growth | +1.33% |
| Balance-sheet Strength | +0.66% |
| Market Elephants | +0.53% |
| Financial Strength Value | +0.31% |
High beta outperformed while Velocity lagged… regime change in progress?
Sector Performance
Why in the name of God are textile stocks rallying? I thought we long since ceded to industry to Bangladesh and Vietnam?
Thought for the Weekend
Heart wrenching:
You have to understand that we know that we will never not feel tired. We will never feel hopeful. We will never get a vacation. Ever. We know that the very act of being poor guarantees that we will never not be poor. It doesn’t give us much reason to improve ourselves.