Markets continue to remain dull amidst concerns around banking contagion spreading to Credit Suisse bank right after the infamous SVB fall. Nifty had it’s seventh consecutive red session losing about 1.8% this week. The index dropped below it’s 200 DMA yet again and also issued a break down from the receding channel shown above. Markets have been hit by a series of negative news flows starting with the Adani report back in Jan 2023. With central banks continuing to hike interest rates along with all the the negative news that is already causing damage, we as investors need to sit tightly and remain patient for the cycle to turn around. If you are following a systematic investing process, there is nothing to worry.
All benchmarks lost between 0.78% to 2.8% this week with Smallcaps taking the bigger beating. It has been a tough time since Dec 2022 as markets started to correct. Benchmarks have lost between 6% to 12% with Nifty Jnr taking a hard hit courtesy to the Adani saga. Overall with 2 more weeks to go before we draw curtains on FY 23, we are staring at a dull year.
Except for REALTY (that witnessed a flat week), all sectors clocked negative returns with banking stocks right at the bottom of the pack owing to the negative sentiments around banking across the globe. When you look at the last month performance , PSE @ 3.3% & ENERGY @ 0.84% are the only sectors to have witnessed a positive closing. FY 23 has been good for PSU BANKS, FMCG , AUTO & PSE while IT stays right at the bottom of the pack.
Most WeekendInvesting strategies showed weakness in line with the markets. Mi 20 and Mi 30 lost quite bit comparatively as NG 5050 posted outstanding figures clocking a superb 1.5% thanks to its 50% exposure to GOLD. This strategy is also the best performing one in FY 23 clocking 6.17% followed by Mi EverGreen @ 6%. These two strategies have exposure to GOLD which has time and again proven to be a great hedge especially during times of crises. We did a special episode on GOLD which you must watch
A SHORT COURSE to Help you Stay Calm in All Market Conditions
Usually, quick – sharp corrections amidst a Bull Run creates ambiguity in the minds of lots of new investors. The most important question we often get asked is whether markets will crash from here. Should we exit? and a few other questions like these. We have made several videos to help you clarify many such questions and help you have the RIGHT MINDSET for a rewarding journey in investing.
We have put together a few of our previous Daily Bytes which we think might be relevant for times like these. Do have a look and send us your thoughts, questions or comments if any.
The smallcase products are all LONG ONLY products that invest in various subsegments of the markets but have the momentum theme underlying in all of them. The strategies will pick strong outperforming stocks and remove weak ones once a week (except Mi NNF10, Mi EverGreen & Mi India Top 10 which is monthly rebalanced)
These are all long-term strategies that will create enormous wealth in each upswing and then maybe give some back in the downswing and repeat this process again and again achieving the compounding effect. With patience and grit to follow strategy over ups and downs over the last nearly five years, it has been shown that much superior CAGR returns are possible than the benchmarks.
FY22 was also superb and I will let the numbers speak for themselves. You may read the Consolidated FY22 report.
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.
The performance of all strategies across various timeframes are listed below.
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.
STAIRS is a LONG / SHORT derivative strategy that is designed to offer an uncorrelated diversification option to your equity portfolio. STAIRS will do well when there are up trends & also when there are down trends while giving up some of the gains when markets remain rangebound/volatile.
You may go through our latest weekly report for more details.
All 4 STAIRS models go in line with our fundamental philosophy of making the most and compounding aggressively when markets give us trends and go very defensive as trends fizzle out and enter a rangebound territory, thus providing robust capital & profit protection.
Effectively – STAIRS is a complete trading system (Futures & Options) that covers each of the following decisions required for a successful trading outcome:
• Markets – What to buy or sell?
• Position Sizing – How much to buy or sell?
• Entries – When to buy or sell?
• Stops – When to get out of a losing position?
• Exits – When to get out of a winning position?
We also run a dedicated telegram channel for STAIRS which you may join using the below link.