The WeekendInvesting Newsletter - 1st Jan 2024

Momentum investing is a popular strategy where investors focus on stocks that have shown positive trends in terms of price movement, believing that these stocks will continue to perform well in the future. While many investors are aware of the basic principles of momentum investing, there are some hidden advantages to this strategy that are often overlooked.

One underappreciated aspect of momentum investing is the ability to select strong stocks from a universe that includes both strong and weak stocks. Typically, investors aim to pick the stronger stocks from this universe, but the issue arises when the universe itself is slow to change its constituents. For instance, let’s consider the Nifty or Nifty Next 50 index . . .

Reading Time : 3 Minutes

As we enter a new year, it’s natural for investors to wonder what lies ahead for the markets. Will 2024 be as successful as 2023 or even better? This question has been a topic of discussion among market pundits, who offer varying opinions on the matter. In this blog post, we will delve into the analysis of the S&P 500 chart and discuss the historical patterns of market volatility, shedding light on what we might expect in the coming months.

The chart above represents the performance of the S&P 500 index, which is currently at its previous high. It’s important to note that . . .

Reading Time : 3 Minutes

WeekendInvesting Daily Bytes

Taking a look at the Nifty, we’ve experienced two flattish days leading up to today, hovering around the 21,650-21,800 mark. Today, we reached a new intraday high of 21,840 but quickly retracted by 150 points. It’s worth mentioning that there was very little participation and poor volumes in the market due to the holiday season. Perhaps it would have been better to start trading from January 2 to encourage better participation from institutions and retail investors.

Sector of the day. . . .

Reading Time : 4 Minutes