Buy when you hear TURMOIL!

Today’s Daily Byte

We’re seeing some softness in the market today, following the Hindenburg situation that arose yesterday. The market recovered fully yesterday but has given up some ground today, looking a bit soft ahead of the Independence Day break.

This week, while the markets opened pretty much on flat ground, they moved down not only in large caps but also in mid-caps and small caps. The entire market seems to have gone into a slow grind mode, with no major moves in any sector. It feels like a profit-taking scenario is emerging.

The development in the market right now is that the MSCI index is getting rejigged ahead of us. Some stocks have moved. We’ll discuss some of these stocks, what’s coming in, what’s going out, and how such rejigs impact the market.

Reading Time : 4 Minutes

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 turn around.

This might seem hard to believe, but historical data shows that when media outlets, especially financial channels, start to emphasize market turmoil, the market tends to bounce back significantly within a year. In fact, over the past two decades, the average return in the year following such warnings has been 40%.. . . . .

Reading Time : 3 Minutes

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 had borrowed in Yen to invest in US stocks, as their profit margins began to shrink. This type of trade, where investors borrow in a low-interest currency like the Yen and invest in higher-yielding assets, can create ripple effects in global markets.. . . . .

Reading Time : 3 Minutes