The WeekendInvesting Newsletter - 21 Feb 2024

Strategy Spotlights

Rolling CAGR denotes how the CAGR progresses over a period of time. 3 year rolling CAGR denotes the CAGR corresponding to the latest 3 years at any given point in time.

Below is a chart comparing the 3 year rolling CAGR of Mi MT Allcap versus the same on its benchmark, the CNX 500 index.

As on 20 Feb 2024, the 3 year CAGR on Mi MT Allcap stands at 42.4% while the same on CNX 500 sums up to 17% (an outstanding beat)

Right since going live back in 2018, Mi MT Allcap’s 3 year CAGR has hovered in the range of 35% to 55% whereas the same on CNX 500 has oscillated between 10% to 30% thus maintaining an extremely healthy lead with solid performance.

Is your EGO winning or your Portfolio ?

The Zomato story is a stark reminder: sometimes, stubborn narratives blind us to reality. While established giants like HDFC Bank underperform, “unconventional” picks like Zomato soar.

So, what’s the lesson?. . . . .

Reading Time : 2 Minutes

How Index investing feeds itself

The “Magnificent Seven,” comprising Apple, Amazon, Nvidia, and other tech giants, dominate the S&P 500, raising concerns about overvaluation. But are these worries justified?

This article explores the phenomenon of index investing and how momentum strategies can navigate this crowded trade. . . . . .

Reading Time : 3 Minutes

WeekendInvesting Daily Bytes

February 21st unfolded contrary to expectations set by the previous session's breakthrough above the 22,100-odd point mark. Despite anticipations of continued market ascension, a significant reverse movement ensued, largely attributed to what is suspected as FII selling.

This shift resulted in a bearish engulfing candle, dampening the budding enthusiasm for new highs despite achieving a new high at the opening. Such candles, where the opening equals the high, often signal a short to intermediate-term peak.

Despite various market peak predictions, accurately timing the market remains a formidable challenge, with bull market tops characterized by prolonged euphoria . . .

Reading Time : 3 Minutes