The WeekendInvesting Newsletter - 21 March 2024

Momentum is the only saviour in this world of disruption

In a recent report by Bradley Saacks of Bank of America, an intriguing revelation surfaced: the number of workers needed at S&P 500 companies to generate a million dollars in revenue has significantly decreased over the last three decades, from seven to two. This data sheds light on the evolving landscape of corporate efficiency and productivity, hinting at the pervasive influence of technological advancements and operational optimization.

As we delve deeper into the implications of this data, it becomes apparent that we’re amidst an era of relentless disruption. . . . . .

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Is Following Promoter Buying – a TRAP ?

Promoters buying their own company’s stock often sparks excitement among investors, who see it as a positive signal for future performance. However, there are several nuances to consider before jumping to conclusions based on promoter activity alone.

Promoters, like any other individual, are prone to biases and may have subjective views on their company’s stock value. Their judgment of fair value can be influenced by personal sentiments and attachment to their venture, leading to inflated perceptions of the stock’s worth. . . . . .

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WeekendInvesting Daily Bytes

Today, Nifty experienced a notable bounce, moving away from a concerning neckline it had closed below in two previous sessions. This movement was largely inspired by the anticipation of the Federal Reserve’s meeting and the expectation of three rate cuts in 2024. Despite the initial gap up and bounce due to these expectations, whether this recovery sustains remains to be seen.

Today’s market showed a predominantly green heatmap, reflecting broad gains across various sectors, including power, utilities, infrastructure, banking, IT, and automotive

Reading Time : 4 Minutes