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

Gold is still an under-owned market !

Over the past decade, the price of gold has seen significant fluctuations, particularly in relation to its popularity among various market players. When we look at gold’s price movement . . .

How much should you allocate to Equity ?

When we look at how households around the world allocate their assets, it becomes clear that there is a significant variation in . . . .

Are the markets signaling consolidation ?

Recent post by Systematix Research reveals an interesting trend in the Nifty index over the past eight months. The sectoral weights are showing a gradual shift in sentiment, with investors seemingly moving towards more defensive sectors . . . .

Bluechips or Midcaps

The share of blue chip stocks in retail portfolios has reached its lowest point in 22 years. This trend isn’t limited to retail investors alone; even institutional investors are holding fewer . . . .

Is S&P 500 gearing up for a big move up ?

The S&P 500 has been on a remarkable run over the last few sessions. As of August 20, 2024, the index has seen nine consecutive days of gains. This kind of momentum, coming off a sharp bottom, is significant and could lead to a  . . . .

The world under owns Gold today

Gold has always played a crucial role in global finance, but its importance has fluctuated over the years. If we look back 100 or even 200 years, the allocation of gold in global assets has changed dramatically. Particularly since 1971, when the gold standard was removed . . . .

Are you missing the best days of the markets ?

Investing in the stock market is a long-term game, and one of the most popular indices to consider is the S&P 500. Over a period of almost 29 years, from 1995 onwards, if you had stayed fully invested in the S&P 500, you would have earned an impressive . . . .

Money is on the path of self destruction

Across Europe, there is a significant issue that is growing rapidly—unfunded pensions. Many governments have promised pensions to their citizens without actually having the funds to support . . . .

Are markets near a volatility point ?

A significant change may be on the horizon for financial markets. When the Federal Reserve’s interest rates start to decline after reaching their peak, there is often a period of market unrest that follows . . . .

Time to Buy Equity or Gold ?

In 1971, a significant change took place in the global financial system. The U.S. decided that the dollar would no longer be backed by gold, ending a system known as the Bretton Woods Agreement. Before this, the U.S. dollar was tied to a fixed amount of gold

WeekendInvesting Specials !

Biggest Nifty Myth Busted !

Markets near ATH. Invest or Wait ?

Markets this week

There has been a gradual uptick in the markets after the drubbing from a couple of weeks back. Although the markets are somewhat stagnating to some extent, they remain strong enough in terms of the underlying current to avoid further decline. The Fed meeting minutes from last night, which suggested potential rate cuts going forward, provide additional clarity on where the interest rate cycles might be headed.

Nifty has been drifting upwards nicely this week. We started the week at around 24,500 and are now at 24,800. While we haven’t fully recovered from the fall experienced in the first week of August due to the yen carry trade issue, the recovery has been significant, with the potential to reach 25,000 and above. The situation remains somewhat mixed, as there’s a lot of promoter selling and new IPOs entering the market, leading to a stronger supply side. Although demand is present, it has stabilized or plateaued, which raises some uncertainty about how much further the market can rise in the short term. Nevertheless, the current position appears stable.

Nifty weekly chart has closed right at the top, at 24,832, almost matching the previous all-time high. The last three weeks have shown recovery after the fall, which is a positive sign, indicating that the uptrend is intact and the market is likely to seek new ground upwards.

Benchmark Indices & WeekendInvesting Overview

Small caps performed exceptionally well this week, with a 3.7% increase. The Mid and Small Cap 400 Index rose by 2.3%, Nifty Next 50 by 2%, CNX 500 by 1.6%, and CNX 200 by 1.3%, with the Nifty 50 up 1.2%.

Among the Weekend Investing strategies, Mi ST ATH and Mi ATH 2 rebounded strongly this week, with gains of 5% and 3.9%, respectively. Both strategies had lagged in recent times, but there seems to be some recovery. Mi 25 was up 3.3%, and HNI Wealth Builder rose by 3.1%. There has been a churn in small caps, which may take some time for older strategies to transition into newer stocks gaining momentum. Mi 35 was slightly behind at 2.8%, while Mi 30 and Mi India Top 10 did well, gaining 2.2%. Mi MT Allcap increased by 2.1%, and Mi NNF 10 by 1.7%. For the current financial year, the performance is already up by 30%. Mi Evergreen gained 0.4%, while HNI Capital Compounder didn’t make any gains this week but is already up by 38% for FY 25. Mi 20 lost ground, down 1.1%, but is still up 33% for FY 25. While there will be short-term fluctuations, the key is to evaluate whether the strategies meet the benchmark over the long term.

Sectoral Overview

In terms of sectors, the real estate sector stood out with a 2.9% decline this week. The chart for this sector looks a bit dull, but upcoming interest rate cuts could provide some tailwinds. However, it’s possible that this is already priced in. On the other hand, metals performed very well, up 3.3%, and PSU banks recovered their full financial year loss with a 2.5% gain. FMCG and pharma sectors also rose by nearly 2% each, contributing to the overall strong performance of most sectors for FY 25, with the exception of PSU banks. IT, metals, and gold have shown significant strength in the very short term this week.

Consumption stocks have been stable, while consumption, pharma, and IT have ruled the top momentum ranks, along with auto and FMCG. These sectors have seen consistent action over the last six months, while real estate and PSU banks have fallen, along with financial services. Energy stocks have also taken a significant hit.

WeekendInvesting Strategy Spotlight

Case Study – Mi ST ATH – on a comeback trail !

Mi ST ATH is on a comeback trail. Although it has been lagging for some time, last week was very positive for the strategy. On a since-live basis, the strategy has performed well, but there were some challenges during the recent rally. Over a one-year period, Mi ST ATH is just above the multi-cap benchmark, while it is still lagging over three years.

However, the five-year performance and CAGR since launch are strong. Mi ST ATH is a good strategy that goes to cash immediately in the face of trouble, which has protected it from deep drawdowns. This design feature will allow the strategy to outperform the market during downturns. Once we experience such an event, Mi ST ATH and Mi ATH 2 are likely to perform very well compared to others.

The strategy is based on stocks with a market cap up to ₹1,000 crore, with a weekly rebalance. The recommended capital is between ₹5 to ₹30 lakhs, and the outlook is five years.

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

Testimonials

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 !