Largecaps poised to trump Smallcaps

Today’s Daily Byte

We’re finally here, just one day before the exit polls of the elections come out. After tomorrow’s polling, media houses will rush to release exit poll numbers, which will influence the markets on Monday, with the actual counting taking place on Tuesday. Depending on the consensus among various exit polls, we could see significant market swings on Monday. If there’s a general agreement among the exit polls, the market might treat it as the likely final result, with June 4th confirming the actual outcome.

The market has been nervous, but Adani stocks are indicating market expectations. . . .

Reading Time : 4 Minutes

Largecaps poised to trump Smallcaps

This chart is a real eye-opener for many investors. It shows the ratio of the Nifty 50 index divided by the small cap index over the last 20 years. This ratio, on a weekly timeframe, ranges between 0.5 and 1.

When Nifty performs better than small caps, the ratio goes up. When small caps outperform, the ratio comes down.

Over the last two decades, we can see three significant up cycles in this ratio.. . . . .

Reading Time : 2 Minutes

Is it time to say goodbye to Bonds ?

A fascinating chart from Bank of America Global Research shows the total returns of US 30-year treasury bonds over the last 40 years. Since the 1980s, there have been phenomenal returns as interest rates continually dropped. When interest rates go down, bond prices go up, leading to higher returns.

However, something significant happened post-COVID.. . . . .

Reading Time : 3 Minutes