🔆 Saturday Coffee Newsletter
- Market Overview: Top Stocks & Asset Classes
- Off the Charts: World Markets Vs Nifty 50
- Good Reads: 5 good reads on investing & finance
- Pop Quiz: Answer and win a cool prize!
What’s up with markets? 📉📈
This week, although with only 3 trading days, was fantastic for the markets as Nifty 50 gained 3%. Gold made new highs as well. RBI paused the rate hikes in its latest MPC meeting which resulted in Yields falling to 7.28.
NSE 500 also gained 3% this week and all sectors were up. There were no “losers” this time but the worst-performing sectors were PSU Banks, FMCG, and Metals. The Realty Index gained a whopping 6% this week although it is down 15% over last year.
Off the charts 📉📈
Compared to global indices, this week belonged to the Nifty 50 with a 3% gain. Nasdaq 100 which struggled in the latter half of 2022, has gained its mojo back and is the best performer of 2023 (YTD).
What we are reading 📝
- Short selling is mostly misunderstood and often demonized. But, it’s not as sinister as it is made out to be. Rather, its an important market function. Podcast: How does short selling work?
- Recent collapses in US and Europe highlight new threats to lenders and upend conventional wisdom. Read: How rising interest rates are exposing bank weaknesses
- Loss aversion is a cognitive bias that suggests that for individuals the pain of losing is psychologically twice as powerful as the pleasure of gaining. Read: Why do we buy insurance?
- What happens when promoters bend rules for their own benefit? Minority shareholders get short-changed. Investors need to keep an eye on those companies and such promoters. Read: Promoters gaming rules for own benefit
- Nat Eliason shares some incredibly intriguing life lessons. Read: 40 Lessons from 30 Years
Pop Quiz 🙋♂️
It’s simple. Reply to this email and answer the question.
This is a price index, used worldwide, published since 1986, by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies. This index compares the price of a popular food product (of a global fast food chain) in two countries by converting the price to a base currency (usually the dollar).
Identify the Index.
Hit reply to this email and answer.
Each week, we randomly pick one winner who gets something cool!
Last week’s winner: Shashank Srivastava 🎉
Last week’s answer: Force Majeure
(If you’re reading this on the website and want to participate in the quiz, subscribe to the newsletter.)
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