Introducing “The WeekendInvesting Newsletter”

Another brand new initiative from our Research Desk is The WeekendInvesting Newsletter. This is a daily newsletter that summarizes all the stories we cover during the day(market nuggets), including the daily byte that we shoot every evening. This newsletter will be delivered to your email every evening on market days, providing you with a wealth of market-related information. The newsletter includes both summaries and long-form blogs for all the market nuggets covered. These blogs are also linked to the videos we shoot, so you can choose to watch or read the content according to your preference.

Check out our past newsletters.

From the Research Desk of WeekendInvesting

Will 2024 beat all the forecasters ?

As we enter a new year, it’s natural for investors to wonder what lies ahead for the markets. Will 2024 be as successful as 2023 or even better? This question has been a topic of discussion among market pundits, who offer varying opinions on the matter. In this blog post, we will delve into the analysis of the S&P 500 chart and discuss the historical patterns of market volatility, shedding light on what we might expect in the coming months.

How momentum strategies help you outperform vs the underlying index

Momentum investing is a popular strategy where investors focus on stocks that have shown positive trends in terms of price movement, believing that these stocks will continue to perform well in the future. While many investors are aware of the basic principles of momentum investing, there are some hidden advantages to this strategy that are often overlooked.

Can smallcaps continue to perform in 2024 ?

The small cap index has been on an impressive run, currently standing at 14,000 levels. Just four years ago, it had dropped to 3000 levels, marking a significant turnaround in its fortunes. This remarkable growth from 3000 to 10,000 and then to 14,000 is a testament to the resilience and potential of small cap stocks. 

2024 can be a GOLDEN year !

The gold market has been closely watched by investors and analysts alike, and currently, it is showing promising signs for a significant upswing. In this article, we will delve into the gold chart and explore the patterns and trends that suggest a potential surge in gold prices in the coming years.

Why US Market level is crucial for India Markets ?

In recent times, there has been a notable shift in the mood of the market. This change can largely be attributed to the performance of the US markets, particularly the Nasdaq and the S&P 500. As we analyze the movement of the Nifty, one of the key indices of the Indian stock market, alongside the US markets, we can observe a significant correlation between the two.

Are you the speedbreaker of your own returns?

Investing in various financial instruments, such as mutual funds, small cases, PMS, or AIFs, offers the opportunity to earn substantial returns. However, it is crucial to understand that the performance of these investment vehicles does not solely determine your overall investment success. In fact, your behavior as an investor plays a significant role in achieving optimal returns.

Are you a good Smallcap Investor ?

When it comes to investing in the stock market, one common debate among investors is whether to focus on small caps or large caps. Small cap stocks are generally considered to have higher growth potential, while large cap stocks are seen as more stable and reliable. In this article, we analyze the performance of small cap and large cap indices over a period of almost 19 years and provide some insights into how investors can approach this conundrum.

Is the JIMNY a BUY or a SELL ?

One example of the significance of market trends can be seen in the sales of the Maruti Jimny, a new SUV model from Maruti, a leading automobile manufacturer in India. According to data from Teambhp.com, Maruti Jimny initially witnessed a staggering demand, with 60,000 to 70,000 bookings and a waiting period of over a year. However, within a few months, the sales figures started plummeting, with only around 700 cars sold per month. 

Make your investing SIMPLE by doing this

In this article, we discuss the charts of YESBANK and CITIGROUP spanning over several decades, capturing the ups and downs of these banks’ fortunes over the years.

Are we living in a Matrix of Money Illusion?

In this blog, we highlight the correlation between the global money supply and asset inflation. 

Cash Confessions

We also conducted a poll on the weekend investing app, asking users about their home loan EMI as a percentage of their in-hand income. The responses showed that the majority (56.7%) had a percentage of zero to 20%, which is considered ideal. We discussed the importance of maintaining the right balance between home loan EMI and take-home income.

Markets this week

In terms of market performance, the Nifty had a blockbuster week leading up to the new year, but this week it remained flattish. However, this consolidation is happening near all-time highs, indicating that there are no major concerns regarding levels. Looking at the weekly chart, we can observe that out of the last ten weeks, there have only been two red weeks, and even those were marginal declines compared to the previous week. This suggests that the market rally is strong and may continue. My speculation is that we may see the Nifty reach 24,000 to 25,000 by May, which could be another 10% increase.

Benchmark Indices Overview

In terms of the broader market, small caps have been leading the way with significant returns. Small caps remain 63.7% up and mid caps are up 57.4% for the financial year. This demonstrates the potential for lumpy returns in the market, where some years may seem quiet, but the following year can make up for it. It’s important for investors to stay invested and have confidence in the market’s ability to deliver returns over time.

WeekendInvesting Overview

Mi ATH 2 saw a blast with a 7.6% increase, while the Mi MT Allcap strategy was up 4.4%. Both of these strategies have performed exceptionally well, with nearly 70% returns for the financial year. It’s worth noting that these strategies are not even focused on small caps, yet they have achieved impressive results.

Mi 20 was up 3.2%, and the HNI Wealth Builder strategy was up 3%. The Mi 20 reached a remarkable 101% return for the financial year, and subscribers of this strategy have been rewarded for their selection. The Mi 25 and Mi 35 were also up nearly 3%, with returns of 64.7% and 85.4% respectively in FY 24. These strategies are underrated and deserve more attention, especially considering their focus on small caps.

Other strategies such as Mi ST ATH, Mi 30, and Mi NNF 10 also experienced positive returns of more than 2%. In terms of benchmark comparisons, the Mi India Top 10 strategy beat the Nifty with a 0.7% increase and achieved a solid 39.6% return for the financial year.

Sectoral Overview

Real Estate and Pharma were the top performers this week, with increases of 7.8% and 3% respectively. Real estate has been a major trend this year, with a whopping 118% increase for the financial year. However, due to limited liquid stocks in the real estate sector, it remains a stock picker’s game and requires careful analysis.

On the other hand, infrastructure and commodities have slipped, while financial services and media have not performed well. It’s important to stay updated on sectoral momentum and adjust investment strategies accordingly.

Spotlight – Mi NNF 10

We did a LIVE AMA covering the importance of large cap exposure in one’s portfolio. We also spoke about how Mi NNF 10 has been a consistent performer for over 3 years of live performance in the markets & concluded the discussion with some exceptional questions from the live audience.

We have a special New Year offer on Mi NNF 10

Use code NYE2024 to avail a flat 20% discount on your subscription to Mi NNF 10

Note : Offer valid till end of 10th Jan 2024

Rebalance Update

We give advance notice here on the upcoming changes in your smallcase for Monday. This advance notice can be used to ignore Monday’s update if there is no change. If there is a change indicated you can use the smallcase app or log in to weekendinvesting.smallcase.com to see the rebalance. A backup email is sent by mid-day Monday if you have not rebalanced by then and yet another one a day later.

Note: We are not including LIQUIDBEES as an ADD or an EXIT count.

WeekendInvesting Strategies Performance

WeekendInvesting Products – LIVE Index Data

Many of you had asked us to make the index series of all WeekendInvesting Products available so that you could perform your own analysis and studies. You can find a link to the LIVE sheet here and also on the HUB under the support column in the content tab.

WeekendInvesting Telegram and YouTube Channel

We post daily content related to investing on our Weekendinvesting Telegram Channel and YouTube channel to help our community take stock of the performance of markets, sectors & our products and touch base upon a new topic every day. We look forward to having you all there! Several videos in this blog are from this series.

Introducing M Profit

That’s it for this week. See you in the next week’s report