The WeekendInvesting Newsletter - 10 Jan 2024

Index investing has gained significant popularity in recent years as a passive investment strategy. The idea is simple: instead of trying to beat the market by investing in individual stocks, you invest in an index fund that tracks the performance of a specific market index. This approach offers diversification and is often touted as a safe and low-cost way to invest. However, it’s essential to understand that index investing is not without its risks.

In this article, we will examine the possibility of index investing failing by looking at two real-life examples: the Hang Seng market and the Japanese market. By analyzing these cases, we can gain valuable insights into the potential pitfalls of relying solely on index investing.

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The current market downturn may have left some investors disappointed, but history suggests that January could bring a turnaround in fortunes. By analysing the NASDAQ average monthly performance, it becomes evident that January has consistently been the strongest month for the past 53 years. This data spans from January to December, revealing an average gain of 2.5% for January, making it the best performing month compared to November and December.

The optimism surrounding a potential January market upswing is further reinforced by the upcoming general elections. The anticipation is that Indian markets will remain . . . .

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WeekendInvesting Daily Bytes

The markets started the day on a bearish note, with a sharp downturn witnessed in the first 15-20 minutes of trading. This decline closed the gap that was created on 26th December. However, the markets were quick to rebound, and in the subsequent hours, a remarkable turnaround occurred, leading to a 200-point gain in the last couple of hours. This substantial gain resulted in a very positive closing for the day.

Sector of the Day . . . .

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