[Newsletter] Market Overview, Nikkei breaks out & 5 Good Reads

🔆 Saturday Coffee Newsletter

• Market Overview: Top Indices & Asset Classes
• Good Reads: 5 good reads on investing & finance
• Off the Chart: India Vs the World
• Pop Quiz: Answer and win a cool prize!

What’s up with markets? 📉📈

Last week, in this newsletter, we wrote “Next week may be volatile due to the withdrawal of 2000 rs notes..”, well – nothing happened. This was a very boring, tight ranged week where the market continued its journey towards its all time high.

Nifty 50 is up 14% over the year and like most of the rallies, this is a rally of disbelief as well. Crude is now around $76 a barrel which is a cool 35% lower than last year. These levels are good for curbing our domestic inflation and making a case for lower interest rates.

Almost everything was up this week, except Financial Services companies. Last week it was realty stocks that were top gainers and this week its the metals. Cyclicals, it seems, are having an “apna time aayega” moment. Well, a bull market in that sense accommodates a lot of sectors.

India Vs the World ⭐

India is having its moment amongst the world indices as Nifty 50 is the second highest gainer over the past 1 year, seconded only by Japan’s Nikkei. Interestingly, Japan’s Nikkei is breaking out after 33 years (excluding dividends) and is finally crossing some pretty ancient levels. Morgan Housel writes about performance of Nikkei Vs S&P 500 from a very long term context – read here.

What we are reading 📝

• What makes Warren and Charlie so different? Read: Investing’s Big Blindspot.
• In The Little Book of Behavioral Investing, James Montier covers the many ways we’re our own worst enemy when it comes to investing.Read: How to Stop Being Your Own Worst Enemy
• It seems obvious to so many that interest rates drive the value trade. However, it’s not nearly that simple, and mostly it’s just not true. Read: Is Value Just an Interest Rate Bet?
• With recession forecasted in many economies this year or next, distressed situations will be an important source of deals for prospective investors. Read: Distress Investing: A Tale of Two Case Studies
• Here are five ways to modify behaviour with the aim of improving long-term outcomes. Read: Five strategies to match your investing to your behaviour

Pop Quiz 🙋‍♂️

Identify this concept?

This concept as wide applications in business, economics, professional sports, and even relationships.

Image: Investopedia

Identify the concept. 

Hit reply to this email and answer.

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Each week, we randomly pick one winner who gets something cool!

Last week’s winner:  Jasmeet Bhogal 🎉

Last week’s answer: Johnnie Walker or Diageo

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