The WeekendInvesting Newsletter - 9 Jan 2024

Investing in assets can be a complex endeavour, requiring a deep understanding of various factors that influence price movements. One often overlooked aspect is the role of liquidity and how it impacts asset prices. In this article, we will delve into the relationship between liquidity and asset valuation, using a real-life example to shed light on this critical concept.

When examining discussions around asset prices, it becomes evident that people often underestimate the significance of liquidity. Many believe that as assets become more valuable, liquidity flows into the market, driving prices higher. However, this perspective fails to acknowledge the inverse relationship between liquidity and asset potential.

Contrary to popular belief . . . .

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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. . . .

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WeekendInvesting Daily Bytes

It was a challenging day for intraday players, particularly in the Nifty market. After discovering that Foreign Institutional Investors (FII) and domestic institutions did not sell, the confidence of market participants grew. They believed that the previous day's fall was a mere facade and that there was no selling in the market. As a result, the market opened with a significant gap up, with the Nifty surging almost 150 points in the first hour. . .

Sector of the day was . . . .

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