Q2 FY25 was another super quarter where the India market outperformance was center stage… The months of July and till mid Aug were subdued but markets really took off post that to hit an all time high of 26277 by the end of Sep 2024. Since the beginning of June post the election results when the markets tanked to near 21000 levels, it has been a great recovery and the markets have been riding on the walls of worry by most market men.
The period Q2 FY25 also coincided with previous 5 quarters being in green and net net since Jan 2023 in 18 months markets have traversed a distance of nearly 10000 points on a base of 17000 which is close to 60%. This kind of a large cap move is certainly an unusual bullish period and the last time we had such a move in 2021-22 it was followed by a lull of a year. Instead of being fearful of such bullish phases, one should embrace both the ups and downs of the markets as second nature and make full use of the opportunities.
India remains the fastest growing large economy in the world and the markets are front running that reality. The FED has cut rates by 50 bps recently and 21 central banks have joined them in cutting rates. It is only a matter of time that RBI too joins the bandwagon and that may ease the burden for corporate margins ahead. The major global events on the horizon remain the further interest rate changes in the US, the US presidential elections, and any geopolitical moves in Israel and Taiwan.
Nifty gained over 7.5 % this quarter and the surprise was that almost all other indices were also in line
For Q2FY25 within Weekendinvesting strategies notably, IndiaTop10 gained 11.3%, HNI CC at 9.9% and Mi EverGreen at 8.7%.
Our belief in the concept of BBC (Bhav Bhagwan Che), a Gujarati saying which means that “Price is God” helps us follow the markets in a non-discretionary manner and we allow the markets to do the talking. This has been our sole mantra in the last 8+ years that we have been offering these services to tens of thousands of WeekendInvestors. Our 100% non-discretionary approach at times can lag the markets when markets make trend changes but over time, we have seen this perform much better than many other styles of investing. The historical CAGR returns experienced by clients and the resulting thousands of testimonials are proof to this claim.
The forecast for next few quarters as it stands today is that of cautious optimism given the political and economic situation of the rest of the world. The American elections and the potential global recession continue to be the top stories in the minds of the global investors. China markets which have started strongly recently can also suck liquidity out of other emerging markets like India.
At WeekendInvesting, we will continue to walk our established chosen path of following our strategies to the T. All our strategies have a self-healing and self-correcting approach and will come around strongly after any drawdown period that we may face. The whole setup is like a high probability winning machine provided you give the strategies adequate time to heal if the market undergoes some damage.
This last quarter we have taken many new initiatives at Weekendinvesting.
– We have been putting in significant efforts towards educating people in the form of our content on YouTube. We have been sharing a Daily Byte on all market days and some data backed episodes over the weekend with a singular objective to impart market knowledge for investors and empower them
– We have strengthened our Daily Byte series by sharing a lot of data including a short story based on the recent happenings of the market towards the end.
– Our newsletters have gone from strength to strength with thousands of folks reading it on a daily basis. The newsletter is the best place to find all our content at one place.
– We have kickstarted LIVE AMA sessions with our team on Saturdays to answer all queries you may have related to the strategies and smallcase ecosystem.
– We have bene working on a momentum tool that is close to launch. You will hear more from us regarding the same very soon.
– Our strategies Mi 20 & Mi 35 completed three glorious years of remarkable performance on 15 July 2024. Users have come in large numbers and appreciated the strong performance these strategies have recorded right since launch.
– We have an exciting announcement for Diwali. We aren’t going to reveal much here. But we are sure that this will be exciting for many.
– We are looking to add more 1-1 discussions for users to gain clarity on Smallcase processes and our strategies.
– We rebooted the WeekendInvesting Twitter channel which has been pushing out interesting threads and market related content. Check it out here
– We also recently kickstarted content on LinkedIn.
We strongly believe in the long-term India story and we believe that momentum strategies will continue to do very well in this India scenario of continuity of growth and liquidity flows. All we need to do is to ensure that we are riding the winners when it is favourable to us and defending our position when it isn’t. The key to success here is discipline and sticking to the proven strategy.
