Investors are their own enemy

Today’s Daily Byte

Markets are pulling in a surprise 1.1% up on Nifty. This was nobody’s guess four days ago. We were looking for a pullback to target number two, which was the pivot high of the previous down candle. I think the market has surprised everybody right now, and of course, there is optimism and some hope for unexpected news in the budget. Maybe the market knows something we don’t—that’s the best guess we can make at this point.

Usually, if I can say more often than not, the market would not have rallied this hard if there was anything really bad in the budget. So, I think a bad budget is out of the window for most part. I would say 99% we will not get a bad budget. Yes, it may be a lame budget, and we may slump a bit post that. That’s the best guess I can make from these price moves.

Reading Time : 4 Minutes

Investors are their own enemy

Peter Lynch is one of the greatest fund managers in history. From 1977 to 1990, he managed the Magellan Fund and achieved an extraordinary 29% CAGR over 13 years. This kind of public market performance is almost impossible to beat. A simple investment of $10,000 at the start of this period would have turned into $260,000 by the end. Such returns are rare, yet what is even more surprising is what happened to the fund’s investors. . . . .

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Markets have shown remarkable consistency !

This chart highlights how many years Nifty has delivered positive returns in a row. 2024 marked the ninth consecutive year of positive returns, making it a rare and strong period of growth. Even during the Covid year, while there was a sharp fall, the market still closed higher than the previous year. This long streak shows how resilient the market has been despite various global and domestic challenges.. . . . . .

Reading Time : 3 Minutes