Tag: weekly

The Nifty ended the week -2.83% (-3.29% in USD terms)

Index Performance

The biggest losers were the real estate and bank indices.

Top Winners and Losers

ETFs

Advancers and Decliners

Yield Curve

Look at the move at the long-end of the curve.

Investment Theme Performance

Sector Performance

A sea of read:

Thought for the Weekend

Karl Marx saw England’s impoverished factory workers as evidence that machines were replacing workers, throwing them into unemployment and poverty. For example, the automated power loom took over tasks formerly done by handloom weavers. Over the 19th century, weaver’s tasks were progressively automated.

 

Weaving a yard of cloth at the end of the century took only 2 percent of the human labor it took to do so on a handloom at the start of the century; machines did the rest.

 

Marx observed this automation and predicted that it would result in mass unemployment. But that’s not what happened. In fact, by the end of the century, there were four times as many factory weavers as in 1830. What Marx missed was that the new technology also increased demand. The greater output per weaver reduced the price of cloth. Consumers reacted by buying more cloth. Greater demand for cloth meant more jobs for weavers despite the automation.

Source: Will robots steal our jobs?

The Nifty was well on its way to higher highs before Argentina happened. The index ended the week +0.08% (-1.25% in USD terms.)

Index Performance

IT was the only silver lining…

Top winners and losers

ETFs

Advancers and Decliners

Yield Curve

Higher and flatter…

Investment Theme Performance

Sector Performance

Fertilizer stocks fell out of favor in a hurry…

Thought for the weekend

Customers are increasingly discovering and buying new solutions in a “bottoms-up” way. The bottoms-up buying model undermines the account control and selling motion advantages of traditional Big Tech companies. Most products, even infrastructure products, are now sold in some form of subscription. These changes in selling, pricing and customer management are hard for incumbents to embrace.

Source: Big Tech Is Going Down

Related: Turning coding coolies into solution architects

The Nifty ended the week +1.46% (+2.43% in USD terms) largely driven by banks and IT.

Index Performance

Top winners and losers

ETFs

Advancers and decliners

Yield Curve

Investment Theme Performance

*Contributed Themes

Sector Performance

Telecom stocks feeling the heat from Reliance Jio… Just when pricing power was threatening to return, the 800 pound gorilla decides to step into the rink…

Thought for the weekend

For an investor to both be right and make money:

• his view of what will happen in the future – and what should be done about it – has to be analytically correct a priori,
• the things he thinks will happen have to actually happen, and
• those things have to happen on schedule.

 

But in investing, it’s hard to know what will happen and impossible to know when it will happen. Many things influence performance other than (a) investors’ hard work and skill and (b) the market’s dependable discounting of information about the future. Luck – randomness, or the occurrence of things beyond our knowledge and control – plays a huge part in outcomes.

 

Source: Getting Lucky (pdf)

The Nifty ended the week down -1.63% (-2.17% in USD terms).

Index Performance

Other than IT, almost all other indices got shellacked…

Top winners and losers

ETFs

Advancers and Decliners

Yield Curve

Look at the 50bps move on the short-end of the curve…

Investment Theme Performance

*Contributed Themes

Sector Performance

Thought for the weekend

Charlie Munger on the Efficient Market Hypothesis:

Efficient market theory is a wonderful economic doctrine that had a long vogue in spite of the experience of Berkshire Hathaway. In fact one of the economists who won — he shared a Nobel Prize — and as he looked at Berkshire Hathaway year after year, which people would throw in his face as saying maybe the market isn’t quite as efficient as you think, he said, “Well, it’s a two-sigma event.” And then he said we were a three-sigma event. And then he said we were a four-sigma event. And he finally got up to six sigmas — better to add a sigma than change a theory, just because the evidence comes in differently. [Laughter] And, of course, when this share of a Nobel Prize went into money management himself, he sank like a stone.

Source: That time Buffett smashed the Efficient Market Hypothesis

The Nifty ended the week up +0.63% (+0.93% in USD terms)

Index Performance

The biggest performers were real-estate and banks…

Top winners and losers

ETFs

Advancers and Decliners

Yield Curve

The short-end of the curve seems to be moving up. Is the market expecting a rate-hike in Jan?

Investment Theme Performance

style=”color:green”>+2.83%Market Fliers+2.47%Market Elephants+2.31%Efficient Growth+2.04%Enterprise Yield+1.02%Velocity+0.57%Long Term Equity+0.27%ADAG Mania+0.22%Momentum 200-0.21%

Sector Performance

Cyclical stocks stole the show…

Thought for the Weekend

For a given set of environmental contingencies–e.g., history, culture, demographics, etc.–the equity allocation preference is mean reverting. It rises in expansionary parts of the cycle, as people become more optimistic about the future and more eager to maximize what they see as attractive returns, and it falls in contractionary parts of the cycle, as people become less optimistic about the future and more concerned about protecting themselves from losses.

Source: Where do returns come from?