A quick introduction to the Weekend Investing app, now available on Google Play and App Store. The app has been received with great enthusiasm, with over 5,000 users already joining. We encourage all weekend investors to download the app, as it provides numerous benefits and features that can enhance your investment experience.
By joining the app, you will receive immediate notifications for urgent messages from us. Additionally, all our content, including YouTube videos and Twitter posts, can be accessed in one place. This ensures that you stay up to date with relevant and valuable information. Moreover, the app allows you to interact with our team, ask questions, and provide feedback. It offers a seamless and convenient channel for communication between investors and our support team.
One of the key advantages of the app is access to exclusive educational content and strategies tailored specifically for weekend investors. We offer educational US strategies, trend analysis posts, market psychology insights, and much more. By leveraging these resources, you can enhance your investing knowledge and make informed decisions. Furthermore, the app provides opportunities for online and offline meetups exclusively for WeekendInvesting subscribers, allowing you to engage with fellow investors and expand your network.
A unique feature of the app is the ability to book a one-on-one call with the Weekend Investing team. This personalised support ensures that you receive prompt assistance and have your queries addressed directly. Additionally, a chat feature is available to provide immediate solutions to any questions or concerns you may have. The aim of the app is to facilitate seamless interaction and provide phenomenal support to all weekend investors and app users.
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 newsletters for this week.
From the Research Desk of WeekendInvesting
One significant development is the decision by the Federal Reserve to halt its scheduled interest rate hikes which has brought about a sense of stability to the market, with expectations that interest rates will remain unchanged for the foreseeable future.
Gold has long been considered a safe haven asset, especially during times of economic uncertainty and crisis. In India, gold has traditionally been a popular investment choice due to its cultural significance as well as its ability to act as a hedge against inflation and currency fluctuations.
Tavi Costa from Crescat Capital had shared a powerful visual that showcases the relationship between gold prices and the movement of the dollar index over the past 15 years.
As of the last recorded data, the Nasdaq index has experienced a significant rally, surging by 41% since the beginning of 2023. On the other hand, the S&P 100 index has only seen a 24.9% increase during the same period. This discrepancy can be attributed to the remarkable performance of tech stocks in the Nasdaq index.
Investing in stocks can be a rollercoaster ride, especially when it comes to volatile stocks. One such example is Wonderla Holidays, a company that operates amusement parks as its major business. The stock of Wonderla Holidays has experienced significant ups and downs . .
As investors, we are constantly bombarded with predictions and forecasts about the stock market. We look to experts, like Mike Wilson, the Chief Investment Officer at Morgan Stanley, to come up with accurate forecasts. After all, they have access to extensive knowledge, teams of experts, and sophisticated modelling techniques. However, the truth is that even the best minds in the industry, with all their resources, often make incorrect predictions.
Markets this week
The market experienced a positive week, with a strong recovery observed since 27 Oct 2023. In just a couple of weeks, the market has regained most of the previous fall. The market ended the week close to 1900 points, and the charts indicate a very positive outlook with potential new highs on the horizon.
Sector-wise, the IT sector was leading the pack with a 5% increase in value. Real estate stocks also saw significant gains, up by 4.6% for the week. Financial and auto sectors showed positive growth, with a 3.8% increase. Public sector enterprise stocks also performed well with a 3.2% gain. On the other hand, Bank Nifty and private banks were in the red, with PSU banks managing a modest 0.8% increase.
Real Estate has firmly held on to the top spot with an outrageous run this year. PSE has also been occupying the top spots consistently. PHARMA & IT have done a solid job in the past 10 days to post good recovery while GOLD has slipped to the last spot in the last 10 days further to a strong uptrend in the markets. BANKS and Financial services took a beating occupying the last spots following RBIs tightening of norms for unsecured lending.
Benchmark Indices Overview
Looking at the benchmark indices, the smallcap 250 index showed the highest gains with a 3.4% increase. The Mid-small 400 Index also performed well, up nearly 3%. Nifty Next 50 index experienced a 2.4% increase, while the CNX 500 and CNX 200 indices saw a 2% gain. Overall, the Nifty has moved up by 13.7% in this financial year, with CNX 200 up by 18%.
Among the strategies, the Mi MT Allcap had a phenomenal week, gaining 6.6%. It has shown remarkable growth this year, with a 45.6% increase compared to its benchmark at nearly 20%. Mi ST ATH and Mi 20 also performed well, with gains of 6.1% and 5.5%, respectively. HNI Wealth Builder and Mi 35 also showed positive growth.
It is important to note that strategies may experience periods of underperformance or consolidation, but they are designed to bounce back strongly. The MI India Top 10, Mi Evergreen, and Mi NNF 10 all had impressive gains this year, outperforming their respective benchmarks.
Spotlight – A sensational 4x ahead of Mi MT Allcap’s 5th anniversary.
Mi MT Allcap strategy, which will soon celebrate its fifth anniversary, has seen a remarkable performance consistently for 5 years since going live in Nov 2018. If you had invested Rs100 in this strategy ignoring taxes, dividends, and transaction costs, your investment would be worth Rs400 (300% gains) today. In contrast, the underlying index, CNX 500, stands at 197, resulting in a 96% gain. The CAGR for this strategy over the live period has been 32%, compared to 14% for the benchmark. The Max Drawdown has been significantly better than the underlying index, with a Romad ratio of 1.13.
This is a weekly rebalance strategy that invests in up to 20 stocks based on absolute momentum. It goes to cash when the momentum is weak and does not invest in stocks below 1000 crore market capitalization. The strategy has consistently delivered impressive results and will be the focus of upcoming campaigns and detailed information.
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
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 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?
That’s it for this week. See you in the next week’s edition !