Power of a concentrated winning stock portfolio

Today’s Daily Byte

Something very remarkable is happening in the markets. The Nifty continues to move on and has climbed Mount 24,000 today. However, the rest of the market is very sluggish. This hasn’t happened in a long time: the Nifty continues to move on while the rest of the market remains stagnant. This may be a sort of last hurrah for this season, with Nifty being propelled by stocks that have not done well so far, while the rest of the stocks that have done well so far are struggling to find a reason to go up higher. The flows are also not helping, but nevertheless, the market is making new highs, and we should be happy about that.

Let’s dive into the main thesis of today: misleading forecasts and how they create narratives in the market that cause people to take actions that harm their portfolios

Reading Time : 4 Minutes

Power of a concentrated winning stock portfolio

A fascinating chart highlights the market cap of the five largest companies in the US markets over the last 45 years. This chart shows the percentage of the total S&P market cap these five companies represent. In the 1980s, it was around 18-19%, which then dropped to about 10-11% by the mid-1990s.

The high concentration of market cap in a few companies significantly impacts the overall market. . . . .

Reading Time : 3 Minutes

Pathetic Bond Real returns in India

Many investors compare their returns in US dollar terms with other markets. But it is more meaningful to consider returns in local currency terms and adjust for inflation. This way, we see gains in real terms, not just nominal terms.

Comparing with other countries is good practice, but the true impact on our investments comes from local currency performance and inflation adjustment.. . . . .

Reading Time : 3 Minutes