{"id":2033951,"date":"2015-09-12T16:02:21","date_gmt":"2015-09-12T10:32:21","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2033951"},"modified":"2015-09-12T16:02:21","modified_gmt":"2015-09-12T10:32:21","slug":"weekly-recap-munger-on-risk","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2015\/09\/12\/weekly-recap-munger-on-risk\/","title":{"rendered":"Weekly Recap: Munger on Risk"},"content":{"rendered":"

\"world.2015-09-04.2015-09-11\"<\/p>\n

Equities<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n
Major<\/th>\n<\/tr>\n<\/thead>\n
DAX(DEU)<\/a><\/td>\n+0.85%<\/span><\/td>\n<\/tr>\n
CAC(FRA)<\/a><\/td>\n+0.57%<\/span><\/td>\n<\/tr>\n
UKX(GBR)<\/a><\/td>\n+1.24%<\/span><\/td>\n<\/tr>\n
NKY(JPN)<\/a><\/td>\n+2.65%<\/span><\/td>\n<\/tr>\n
SPX(USA)<\/a><\/td>\n+2.36%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n
MINTs<\/th>\n<\/tr>\n<\/thead>\n
JCI(IDN)<\/a><\/td>\n-1.24%<\/span><\/td>\n<\/tr>\n
INMEX(MEX)<\/a><\/td>\n+0.34%<\/span><\/td>\n<\/tr>\n
NGSEINDX(NGA)<\/a><\/td>\n+0.60%<\/span><\/td>\n<\/tr>\n
XU030(TUR)<\/a><\/td>\n-2.08%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n
BRICS<\/th>\n<\/tr>\n<\/thead>\n
IBOV(BRA)<\/a><\/td>\n-0.20%<\/span><\/td>\n<\/tr>\n
SHCOMP(CHN)<\/a><\/td>\n+1.27%<\/span><\/td>\n<\/tr>\n
NIFTY(IND)<\/a><\/td>\n+1.75%<\/span><\/td>\n<\/tr>\n
INDEXCF(RUS)<\/a><\/td>\n+1.17%<\/span><\/td>\n<\/tr>\n
TOP40(ZAF)<\/a><\/td>\n-0.22%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n
\n
\n
\n

Commodities<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n\n
Energy<\/th>\n<\/tr>\n<\/thead>\n
Brent Crude Oil<\/td>\n-3.80%<\/span><\/td>\n<\/tr>\n
WTI Crude Oil<\/td>\n-3.66%<\/span><\/td>\n<\/tr>\n
Heating Oil<\/td>\n-3.50%<\/span><\/td>\n<\/tr>\n
RBOB Gasoline<\/td>\n-3.51%<\/span><\/td>\n<\/tr>\n
Ethanol<\/td>\n+2.12%<\/span><\/td>\n<\/tr>\n
Natural Gas<\/td>\n+1.02%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n
Metals<\/th>\n<\/tr>\n<\/thead>\n
Palladium<\/td>\n+2.49%<\/span><\/td>\n<\/tr>\n
Platinum<\/td>\n-2.16%<\/span><\/td>\n<\/tr>\n
Silver 5000oz<\/td>\n-0.68%<\/span><\/td>\n<\/tr>\n
Copper<\/td>\n+6.47%<\/span><\/td>\n<\/tr>\n
Gold 100oz<\/td>\n-1.58%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n
\n

Currencies<\/h3>\n

USDEUR<\/a>:-1.62% <\/span> USDJPY<\/a>:+1.40% <\/span><\/p>\n

\n
\n\n\n\n\n\n\n\n\n
MINTs<\/th>\n<\/tr>\n<\/thead>\n
USDIDR(IDN)<\/a><\/td>\n+1.06%<\/span><\/td>\n<\/tr>\n
USDMXN(MEX)<\/a><\/td>\n-0.51%<\/span><\/td>\n<\/tr>\n
USDNGN(NGA)<\/a><\/td>\n+0.00%<\/span><\/td>\n<\/tr>\n
USDTRY(TUR)<\/a><\/td>\n+1.12%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n
BRICS<\/th>\n<\/tr>\n<\/thead>\n
USDBRL(BRA)<\/a><\/td>\n+0.57%<\/span><\/td>\n<\/tr>\n
USDCNY(CHN)<\/a><\/td>\n+0.30%<\/span><\/td>\n<\/tr>\n
USDINR(IND)<\/a><\/td>\n+0.11%<\/span><\/td>\n<\/tr>\n
USDRUB(RUS)<\/a><\/td>\n-0.22%<\/span><\/td>\n<\/tr>\n
USDZAR(ZAF)<\/a><\/td>\n-2.15%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Agricultural<\/th>\n<\/tr>\n<\/thead>\n
Coffee (Arabica)<\/td>\n-2.16%<\/span><\/td>\n<\/tr>\n
Cotton<\/td>\n+2.60%<\/span><\/td>\n<\/tr>\n
Sugar #11<\/td>\n+4.19%<\/span><\/td>\n<\/tr>\n
White Sugar<\/td>\n-0.09%<\/span><\/td>\n<\/tr>\n
Corn<\/td>\n+7.38%<\/span><\/td>\n<\/tr>\n
Cocoa<\/td>\n+2.20%<\/span><\/td>\n<\/tr>\n
Feeder Cattle<\/td>\n-0.42%<\/span><\/td>\n<\/tr>\n
Lean Hogs<\/td>\n-2.41%<\/span><\/td>\n<\/tr>\n
Soybean Meal<\/td>\n+0.22%<\/span><\/td>\n<\/tr>\n
Soybeans<\/td>\n+1.34%<\/span><\/td>\n<\/tr>\n
Wheat<\/td>\n+3.44%<\/span><\/td>\n<\/tr>\n
Cattle<\/td>\n+0.06%<\/span><\/td>\n<\/tr>\n
Coffee (Robusta)<\/td>\n-3.02%<\/span><\/td>\n<\/tr>\n
Lumber<\/td>\n+6.22%<\/span><\/td>\n<\/tr>\n
Orange Juice<\/td>\n-5.97%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

Credit Indices<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Index<\/th>\nChange<\/th>\n<\/tr>\n<\/thead>\n
Markit CDX EM<\/td>\n-0.04%<\/span><\/td>\n<\/tr>\n
Markit CDX NA HY<\/td>\n+0.30%<\/span><\/td>\n<\/tr>\n
Markit CDX NA IG<\/td>\n-1.02%<\/span><\/td>\n<\/tr>\n
Markit iTraxx Asia ex-Japan IG<\/td>\n-5.46%<\/span><\/td>\n<\/tr>\n
Markit iTraxx Australia<\/td>\n-2.71%<\/span><\/td>\n<\/tr>\n
Markit iTraxx Europe<\/td>\n-2.42%<\/span><\/td>\n<\/tr>\n
Markit iTraxx Europe Crossover<\/td>\n-11.48%<\/span><\/td>\n<\/tr>\n
Markit iTraxx Japan<\/td>\n-1.82%<\/span><\/td>\n<\/tr>\n
Markit iTraxx SovX Western Europe<\/td>\n-0.17%<\/span><\/td>\n<\/tr>\n
Markit LCDX (Loan CDS)<\/td>\n+0.00%<\/span><\/td>\n<\/tr>\n
Markit MCDX (Municipal CDS)<\/td>\n-0.27%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\nMarkets ended in the green after the brutal beating it took the previous week<\/a>. The VIX ended below 25<\/a> but is still way about its long-run average. The next week is going to be all about the US Fed – and maybe a short-covering rally ahead of Thursday’s meeting.\n<\/div>\n<\/div>\n

Nifty Heatmap<\/h3>\n

\"CNX<\/a><\/p>\n

Index Returns<\/h3>\n

For a deeper dive into indices, check out our weekly Index Update<\/a>.
\n\"index.performance.2015-09-04.2015-09-11\"<\/a><\/p>\n

Market Cap Decile Performance<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Decile<\/th>\nMkt. Cap.<\/th>\nAdv\/Decl<\/th>\n<\/tr>\n<\/thead>\n
1 (micro)<\/td>\n-5.60%<\/span><\/td>\n60\/73<\/td>\n<\/tr>\n
2<\/td>\n-3.21%<\/span><\/td>\n59\/74<\/td>\n<\/tr>\n
3<\/td>\n-3.70%<\/span><\/td>\n58\/76<\/td>\n<\/tr>\n
4<\/td>\n-2.97%<\/span><\/td>\n59\/74<\/td>\n<\/tr>\n
5<\/td>\n-2.98%<\/span><\/td>\n59\/74<\/td>\n<\/tr>\n
6<\/td>\n-3.00%<\/span><\/td>\n63\/71<\/td>\n<\/tr>\n
7<\/td>\n-3.32%<\/span><\/td>\n57\/76<\/td>\n<\/tr>\n
8<\/td>\n-2.20%<\/span><\/td>\n65\/69<\/td>\n<\/tr>\n
9<\/td>\n-1.38%<\/span><\/td>\n59\/74<\/td>\n<\/tr>\n
10 (mega)<\/td>\n-0.37%<\/span><\/td>\n65\/69<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\nOverall, markets were down – NIFTY’s performance did not bleed into the rest of the market…\n<\/div>\n<\/div>\n

Top Winners and Losers<\/h3>\n
\n
\n\n\n\n\n\n\n\n
CONCOR<\/a><\/td>\n+9.40%<\/span><\/td>\n<\/tr>\n
YESBANK<\/a><\/td>\n+9.85%<\/span><\/td>\n<\/tr>\n
RCOM<\/a><\/td>\n+11.02%<\/span><\/td>\n<\/tr>\n
INFRATEL<\/a><\/td>\n-8.11%<\/span><\/td>\n<\/tr>\n
MOTHERSUMI<\/a><\/td>\n-4.99%<\/span><\/td>\n<\/tr>\n
ADANIPORTS<\/a><\/td>\n-4.83%<\/span><\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\nA mixed bag of a market…\n<\/div>\n<\/div>\n

ETF Performance<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n
INFRABEES<\/a><\/td>\n+3.37%<\/span><\/td>\n<\/tr>\n
PSUBNKBEES<\/a><\/td>\n+3.17%<\/span><\/td>\n<\/tr>\n
BANKBEES<\/a><\/td>\n+2.16%<\/span><\/td>\n<\/tr>\n
NIFTYBEES<\/a><\/td>\n+1.50%<\/span><\/td>\n<\/tr>\n
CPSEETF<\/a><\/td>\n+0.00%<\/span><\/td>\n<\/tr>\n
GOLDBEES<\/a><\/td>\n-1.08%<\/span><\/td>\n<\/tr>\n
JUNIORBEES<\/a><\/td>\n-1.17%<\/span><\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\nGold continued to tank…\n<\/div>\n<\/div>\n

Yield Curve<\/h3>\n

\"yield<\/a><\/p>\n

Bond Indices<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n
Sub Index<\/th>\nChange in YTM<\/th>\nTotal Return(%)<\/th>\n<\/tr>\n<\/thead>\n
0 5<\/td>\n+0.01<\/span><\/td>\n+0.12%<\/span><\/td>\n<\/tr>\n
5 10<\/td>\n+0.03<\/span><\/td>\n-0.01%<\/span><\/td>\n<\/tr>\n
10 15<\/td>\n+0.02<\/span><\/td>\n+0.02%<\/span><\/td>\n<\/tr>\n
15 20<\/td>\n+0.04<\/span><\/td>\n-0.18%<\/span><\/td>\n<\/tr>\n
20 30<\/td>\n+0.01<\/span><\/td>\n-0.02%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\nBond yields ticked up marginally…\n<\/div>\n<\/div>\n

Investment Theme Performance<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
ADAG stocks<\/a><\/td>\n+6.75%<\/span><\/td>\n<\/tr>\n
High Beta<\/a><\/td>\n+3.48%<\/span><\/td>\n<\/tr>\n
Financial Strength Value<\/a><\/td>\n+3.06%<\/span><\/td>\n<\/tr>\n
Momentum<\/a><\/td>\n+2.43%<\/span><\/td>\n<\/tr>\n
Magic Formula<\/a><\/td>\n+2.07%<\/span><\/td>\n<\/tr>\n
CNX 100 Enterprise Yield<\/a><\/td>\n+1.83%<\/span><\/td>\n<\/tr>\n
Velocity<\/a><\/td>\n+1.43%<\/span><\/td>\n<\/tr>\n
PPFAS Long Term Value<\/a><\/td>\n+1.06%<\/span><\/td>\n<\/tr>\n
Low Volatility<\/a><\/td>\n+0.69%<\/span><\/td>\n<\/tr>\n
Next Trillion<\/a><\/td>\n+0.25%<\/span><\/td>\n<\/tr>\n
Balance Sheet Strength<\/a><\/td>\n+0.22%<\/span><\/td>\n<\/tr>\n
Quality to Price<\/a><\/td>\n+0.05%<\/span><\/td>\n<\/tr>\n
Tactical CNX 100<\/a><\/td>\n+0.00%<\/span><\/td>\n<\/tr>\n
ASK Life<\/a><\/td>\n-0.62%<\/span><\/td>\n<\/tr>\n
The RBI Restricted List<\/a><\/td>\n-4.39%<\/span><\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\nHopefully, in the first stages of recovering from their drawdowns…\n<\/div>\n<\/div>\n

Equity Mutual Funds<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n\n\n
Best<\/th>\n<\/tr>\n<\/thead>\n
Mirae Asset China Advantage Fund – Regular Plan Growth Option<\/a><\/td>\n+4.21%<\/span><\/td>\n<\/tr>\n
Kotak Global Emerging Market Fund – Growth<\/a><\/td>\n+3.13%<\/span><\/td>\n<\/tr>\n
HDFC Core and Satellite Fund – GROWTH<\/a><\/td>\n+2.90%<\/span><\/td>\n<\/tr>\n
HDFC Premier Multi-Cap Fund-Growth<\/a><\/td>\n+2.69%<\/span><\/td>\n<\/tr>\n
Franklin India Feeder – Franklin U.S. Opportunities Fund – Growth<\/a><\/td>\n+2.61%<\/span><\/td>\n<\/tr>\n
HSBC Emerging Markets Fund – Growth<\/a><\/td>\n+2.52%<\/span><\/td>\n<\/tr>\n
JM Core 11 Fund – Growth option<\/a><\/td>\n+2.47%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n
Worst<\/th>\n<\/tr>\n<\/thead>\n
Sahara Wealth Plus Fund-Variable Pricing Option-Growth Option<\/a><\/td>\n-0.32%<\/span><\/td>\n<\/tr>\n
Sahara Wealth Plus Fund-Fixed Pricing Option-Growth Option<\/a><\/td>\n-0.33%<\/span><\/td>\n<\/tr>\n
LIC NOMURA MF MIDCAP FUND – REGULAR PLAN – GROWTH<\/a><\/td>\n-0.35%<\/span><\/td>\n<\/tr>\n
DSP BlackRock 3 Years Close Ended Equity Fund – Regular Plan – Growth<\/a><\/td>\n-0.35%<\/span><\/td>\n<\/tr>\n
SBI MAGNUM GLOBAL FUND – REGULAR PLAN -GROWTH<\/a><\/td>\n-0.47%<\/span><\/td>\n<\/tr>\n
Birla Sun Life Commodity Equities Fund – Global Agri Plan – Growth – Regular Plan<\/a><\/td>\n-1.40%<\/span><\/td>\n<\/tr>\n
HSBC Brazil Fund-Growth<\/a><\/td>\n-4.36%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

Bond Mutual Funds<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n\n\n
Best<\/th>\n<\/tr>\n<\/thead>\n
SBI INFLATION INDEXED BOND FUND – REGULAR PLAN – GROWTH<\/a><\/td>\n+0.25%<\/span><\/td>\n<\/tr>\n
DWS Inflation Indexed Bond Fund – Regular Plan – Growth<\/a><\/td>\n+0.24%<\/span><\/td>\n<\/tr>\n
HDFC Inflation Indexed Bond Fund – Regular Growth<\/a><\/td>\n+0.21%<\/span><\/td>\n<\/tr>\n
L&T Gilt Fund-Growth<\/a><\/td>\n+0.16%<\/span><\/td>\n<\/tr>\n
HSBC Gilt Fund – Growth<\/a><\/td>\n+0.13%<\/span><\/td>\n<\/tr>\n
ICICI Prudential Dynamic Accrual Plan – Regular Plan – Growth<\/a><\/td>\n+0.11%<\/span><\/td>\n<\/tr>\n
DSP BlackRock Constant Maturity 10Y G-Sec Fund – Regular Plan – Growth<\/a><\/td>\n+0.10%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n
Worst<\/th>\n<\/tr>\n<\/thead>\n
L&T Triple Ace Bond Fund-Growth Plan<\/a><\/td>\n-0.02%<\/span><\/td>\n<\/tr>\n
Birla Sun Life Dynamic Bond Fund – Growth – Regular Plan<\/a><\/td>\n-0.02%<\/span><\/td>\n<\/tr>\n
HDFC Income Fund-Growth<\/a><\/td>\n-0.02%<\/span><\/td>\n<\/tr>\n
Axis Income Fund – Growth Option<\/a><\/td>\n-0.03%<\/span><\/td>\n<\/tr>\n
DWS Medium Term Income Fund- Regular Plan- Growth<\/a><\/td>\n-0.06%<\/span><\/td>\n<\/tr>\n
Sundaram Flexible Fund -Flexible Income Plan Regular – Growth<\/a><\/td>\n-0.08%<\/span><\/td>\n<\/tr>\n
Reliance Corporate Bond Fund – Growth Option<\/a><\/td>\n-0.16%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

Thoughts for the weekend<\/h3>\n

Charlie Munger on Risk:<\/p>\n

    \n
  1. Risk to us is a) the risk of permanent loss of capital, or b) the risk of inadequate return.<\/li>\n
  2. Using a stock\u2019s volatility as a measure of risk is nuts.<\/li>\n
  3. Volatility is an overworked concept. You shouldn\u2019t be imprisoned by volatility.<\/li>\n
  4. Someone will always be getting richer faster than you. This is not a tragedy.<\/li>\n
  5. When any person offers you a chance to earn lots of money without risk, don\u2019t listen to the rest of their sentence.<\/li>\n<\/ol>\n

    Source: A Dozen Things I\u2019ve Learned from Charlie Munger about Risk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Equities Major DAX(DEU) +0.85% CAC(FRA) +0.57% UKX(GBR) +1.24% NKY(JPN) +2.65% SPX(USA) +2.36% MINTs JCI(IDN) -1.24% INMEX(MEX) +0.34% NGSEINDX(NGA) +0.60% XU030(TUR) -2.08% BRICS IBOV(BRA) -0.20% SHCOMP(CHN) +1.27% NIFTY(IND) +1.75% INDEXCF(RUS) +1.17% TOP40(ZAF) -0.22% Commodities Energy Brent Crude Oil -3.80% WTI Crude Oil -3.66% Heating Oil -3.50% RBOB Gasoline -3.51% Ethanol +2.12% Natural Gas +1.02% Metals Palladium … <\/p>\n","protected":false},"author":2,"featured_media":2032021,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[987],"class_list":["post-2033951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-your-money","tag-weekly","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2033951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2033951"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2033951\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2032021"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2033951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2033951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2033951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}