The WeekendInvesting Newsletter - 1 April 2024

• Mi ST ATH has completed 5 glorious years in the markets.

• The strategy, since it’s launch on 01 Apr 2019, has recorded a solid performance clocking 286% compared to 108% on the CNX 500 (the strategy’s benchmark) Mi ST ATH’s CAGR at the end of 5 years since launch stands at a very healthy 31% compared to 16% on the CNX 500 index.
  

• We would like to thank all subscribers of the strategy for their continued support and also convey our wishes for a rewarding journey in the future too.

Can Energy Costs derail markets ?

The CNX Energy Energy index has been on a remarkable upward trajectory, especially in the aftermath of COVID-19. Over the past four to five years, it has soared, nearly quadrupling in value since its 2020 low. This surge is particularly noteworthy considering the increasing costs associated with energy production and consumption, especially in AI data centers, which heavily rely on energy.

Notably, energy sector funds, as depicted by the white line in Tabi Costa’s chart from Crescent Capital, have experienced significant growth both in the US and internationally. . . . . .

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Perils of Index Investing

Exploring the historical trends of various indices over the past 70 to 80 years reveals fascinating insights into market dynamics and the duration between all-time highs (ATH). While investors in India may be accustomed to frequent ATHs, this is not the case for all markets globally.

In several countries like the Philippines, New Zealand, Taiwan, and Thailand, there have been prolonged periods, spanning decades, where the market failed to reach new ATHs. For instance, Portugal experienced a staggering 20-year gap between ATHs in 1954. Similarly, Japan endured a lengthy bear run from 1989, lasting over 30 to 35 years before witnessing a resurgence.. . . . .

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WeekendInvesting Daily Bytes

We closed the previous financial year on a high note, with expectations set for recovery towards the end. The recent sessions, including today’s, have confirmed that the bulls are not only back but are making a significant impact. Nifty opened with a gap up, buoyed by positive news such as India’s upgrade by rating agencies to the fastest-growing economy for calendar 2024, along with the anticipation surrounding the upcoming elections, which the market seems to believe won’t offer much contest.

Reading Time : 4 Minutes