[9 Jul 22] Newsletter: Market Overview, Links we like & Our weekly show

🔆 Quick glance

• Nifty 50 PE ratio – Valuation indicator for the current markets
• Hits & Misses – Stocks that gained and lost the most
• Links we like – 5 good reads on markets & money
• Capitalmind Show – Kya Lagta Hai Bazaar

Market Overview 🎯

The Nifty’s PE Ratio is the Nifty’s market cap divided by the earnings of the companies, added up. The ratio is used as a valuation relative to the past.

It’s easier to miss the big picture amidst the short term noise. So let’s zoom out.

Currently, the PE ratio indicates that the Nifty 50 is at an attractive level to buy into. We’ll let the data do the talking.

Hits and Misses 📈 📉

Stocks that topped the charts or failed to impress in this week.

ABB and Canara Bank are having an impressive year while the markets go through turmoil. Last week, and even the whole last month, was particularly grim for ONGC and Oil India.

Links we like 📝

1. Here’s a framework that will help you to overcome the fear of a bear market and survive for the long term irrespective of the market environment. Read: Fear of Crashing
2. Bear market should be an investment opportunity for young investors and a consolidation phase for old investors. There are more than one ways to play such markets, here’s one. Read: how-to-stand-up-to-a-bear-market
3. What are the signs of disinflation? What is causing the disinflation currently? Is it the supply or is it the demand? Read: Disinflation begins
4. Here’s an article where the author explains why the momentum and short-term reversal exist through an experiment done on all US-listed stocks from 1963 to 2019. Read: momentum-by-day-is-not-the-same-as-momentum-by-night
5. I will argue that almost everything that we are observing in markets, across asset classes, can be explained by a pullback on risk capital, and that understanding the magnitude of the pullback, and putting it in a historical perspective, is key to gauging what is coming next. Read:  Musings on Markets

Kya Lagta Hai Bazaar🎙

We do a weekly show with Deepak Shenoy where we talk about markets, finance, and investing. A candid conversation to wrap up the week and a chance to interact with you all. Join in, every Friday, at 4 PM on YouTube. To know what to expect, check out our latest episode

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