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

Market undercurrent is strong

Recent developments surrounding the Hindenburg allegations in the market have been quite interesting. Despite attempts to create fear, the market has . . .

Ignore the Noise

One of the most valuable lessons for investors is learning to ignore market predictions. Over the last 15 years, the US market has achieved a remarkable compound annual growth rate (CAGR) of 14.69%. This growth has happened despite countless predictions of market crashes and . . . .

Buy when you hear TURMOIL!

There is an interesting pattern in the stock market that many investors might find surprising. Every time you hear that the markets are in turmoil, there is a good chance that things are about to . . . .

Why did the YEN unwind not disturb India ?

Recently, a significant event unfolded in the financial world involving the Yen carry trade. The Yen began to appreciate against the US dollar, largely due to a rise in interest rates in Japan while US yields started to decline following the FOMC meeting. This shift affected those who . . . .

Median PE is in line

There has been some discussion recently about the Nifty 50’s price-to-earnings (PE) ratio, with some investors concerned that the market might be overvalued. However, data from reliable sources like ET Money show that the current PE ratio of 22.4 is actually in line with . . . .

Why is Gold moving East ?

Recent data reveals a significant increase in gold reserves among BRICS nations, particularly Russia, India, and China. These countries have been steadily accumulating gold over the years, especially since the 2008 financial crisis. While the official reserves show substantial amounts, there is evidence that China and Russia may . . . .

Have you thought of these risk

India is surrounded by a series of unstable and challenging situations in its neighboring countries. To the west, Pakistan and Afghanistan are grappling with severe . . . .

Will the markets tank in September ?

The relationship between the Federal Funds Rate and the stock market is something that many investors watch closely. Over the years, there has been a clear pattern where changes in this rate, especially downward movements, have often coincided with . . . .

WeekendInvesting Specials !

25k SIP to 12 Cr Portfolio ?

Worst Sector ? 0% CAGR in 18 years ?

Markets this week

What a week this has been! The market has bounced back with vigor, fueled by positive data from the U.S. markets. Concerns about a recession seem to have dissipated almost as quickly as they arose. Within just a week’s time, the outlook has brightened considerably. The U.S. markets have recovered, with the Nasdaq bouncing back, and the Indian markets have largely followed suit. Everything seems to be pointing towards a positive trajectory going forward. Adding to the optimism, gold has reached a new all-time high, crossing the $2,500 mark. This suggests that liquidity is ample in the system, and expectations of interest rate cuts in September are solidifying.

This week in Nifty, we saw some volatility, particularly midweek, but the market ended on a strong note. With the 15th August holiday, it was a shorter week. Although the market hasn’t fully recovered from the recent gaps, it appears to be on the path to recovery. The low from August 14th has now become a key pivot point for the Nifty moving forward. On the weekly candle, it’s notable that despite some market pullbacks, there hasn’t been a red candle in the last two weeks. This indicates that the bulls still have the upper hand, managing to recover by the end of the week even when starting on weak footing.

Benchmark Indices & WeekendInvesting Overview

In terms of benchmarks, the Nifty 50 gained 0.7%, while the CNX 200 and CNX 500 were up 0.6%. Mid and small caps showed muted performance, rising by 0.5%, and the Nifty Next 50 was even more muted at 0.3%. Small caps were nearly flat at 0.2%.

Among the Weekend Investing strategies, several performed exceptionally well, including HNI Capital Compounder, Mi 20, Mi Evergreen, and Mi 35. However, there were some underperformers, with Mi India Top 10 losing 0.9%, Mi 30 down 0.8%, and Mi NNF 10 slipping by 0.7%. Overall, there was no significant damage across the strategies.

Sectoral Overview

IT stocks led the way with a 4.7% gain, followed by Real Estate at 2.6%. On the downside, PSU banks fell by 2.2%. The upward movement in IT and Real Estate is particularly encouraging, as these sectors have corrected from their previous highs and now seem poised to challenge all-time highs again.

Pharma, Consumption, and FMCG sectors remain the top performers in terms of momentum across various time periods. In the very short term, IT has taken the lead, followed by Realty, Pharma, FMCG, and Consumption. While these are still defensive sectors, there’s a noticeable shift towards higher risk-taking strategies.

WeekendInvesting Strategy Spotlight

Case Study – APAR INDUSTRIES

One interesting case study from this week is APAR Industries. We entered this stock at around ₹2,500, much later than its initial rise from ₹285 in 2021. This is a common occurrence in many strategies; a stock doesn’t enter the strategy until the underlying index includes it. However, even though we got in late, we’re still holding, and the stock is now trading at ₹8,400. This example highlights the power of holding onto your winners, even if you enter late. The key skill isn’t just getting in at the right time, but knowing when to exit when the market turns against you.

Mi 35 has been another strong performer, consistently beating its underlying benchmark in absolute returns since its inception. The CAGR has also been solid.

Mi 35 is a 35-stock rotational strategy focusing solely on small caps, with a well-diversified portfolio, meaning that one or two stocks won’t drastically impact the overall performance. If you’re interested, it’s worth taking a closer look at this strategy.

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

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.

Check out M Profit

Disclaimers & Disclosures

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