A SEA OF RED – RBI coming out with a sudden announcement to hike interest rates only added to the prevailing pessimism. Markets cracked hard in reaction to this with Nifty 50 losing 4% and other benchmarks losing between 4% & 6% this week. Volatility has spiked & FIIs have continued to sell aggressively while Domestic inflows have ensure that the fall isn’t bigger. Rising yields , soaring inflation , partial lockdowns in few parts of China , constant outbreak scare of other variants of COVID , war tensions , etc are a few major factors that may be responsible for this downtrend. Interest rates are likely to be higher till inflation is brought under control in which case stock markets may not react to this in a positive way. This may be a good time to reevaluate your risk appetite & diversification if you came under panic in any of the last few trading sessions.
NASDAQ – the global flagship tech index is down 24% and it’s Indian counterpart – Nifty IT is also down 20% from recent highs. REALTY came under heavy selling this week with the index plunging 8%. In the last one month, IT & REALTY are down 14% , METALS & PSU Banks are down 10% while ENERGY has been the only sector to continue trade in green. These are definitely very tough times if not the toughest and one needs to participate with utmost caution.
Most WeekendInvesting Smallcases are down after a decent start in FY 23 and we hope things will turn around at some point if not soon enough. If the downward trend continues, absolute momentum strategies will see gradual allocation to CASH while rotational momentum strategies will stick to the strongest stocks in their universe. You may not have to worry about the short term happenings of the markets as long as you are investing in a system with proper rules.
Performance is updated below.
You may also read the full report here.
A SHORT COURSE to Help you Stay Calm in All Market Conditions
Usually, quick – sharp corrections amidst a Bull Run creates ambiguity in the minds of lots of new investors. The most important questions we often get asked is whether markets will crash from here ? Should we exit ? and few other questions like these. We have made several videos to help you clarify many such questions and help you have the RIGHT MINDSET for a rewarding journey in investing.
We have put together a few of our previous Daily Bytes which we think might be relevant for times like these. Do have a look and send us your thoughts, questions or comments if any.
The smallcase products are all LONG ONLY products that invest in various subsegments of the markets but have the momentum theme underlying in all of them. The strategies will pick strong outperforming stocks and remove weak ones once a week (except NNF10 which is monthly rebalanced)
These are all long term strategies that will create enormous wealth in each upswing and then maybe give some back in the downswing and repeating this process again and again achieving the compounding effect. With patience and grit to follow strategy over ups and downs over the last nearly five years it has been shown that much superior CAGR returns are possible than the benchmarks.
FY22 was also superb and I will let the numbers speak for themselves. You may read the Consolidated FY22 report.
We give an advance notice here on the upcoming changes in your smallcase for Monday . This advance notice can be used to ignore Monday update if there is no change. If there is a change indicated you can use the smallcase app or login to weekendinvesting.smallcase.com to see the rebalance. A back up email is sent by mid day Monday if you have not rebalanced by then and yet another one a day later.
Note : We are not including LIQUIDBEES as an ADD or an EXIT count.
The performance for the week and the month for all the smallcases is presented below.
Large & Mid Cap Strategies – Performance
Mid & Smallcap Strategies – Performance
Smallcap Based Strategies
All Cap Based Strategies – Performance
Many of you had asked us to make the index series of all WeekendInvesting Products available so that you could perform your own analysis and studies. You can find a link to the LIVE sheet here and also on the HUB under support column in the content tab.
WeekendInvesting Telegram and YouTube Channel
We post daily content related to investing on our Weekendinvesting Telegram Channel and YouTube channel to help our community take stock of the performance of markets, sectors & our products and touch base upon a new topic every day. We look forward to having you all there.! The several videos in this blog are from this series.
We have launched revamped versions of our STAIRS models and we had made a video giving you a basic introduction to the models.
STAIRS is a LONG / SHORT derivative strategy that is designed to offer an uncorrelated diversification option to your equity portfolio. STAIRS will do well when there are up trends & also when there are down trends while giving up some of the gains when markets remain rangebound / volatile.
Except for EXP model which clocked (+3.4%), all other models stayed flat as volatility & choppiness continued in the markets. You may go through this report to read through the Weekly Report
All 4 STAIRS models go in line with our fundamental philosophy of making the most and compounding aggressively when markets give us trends and go very defensive as trends fizzle out and enter a rangebound territory thus providing a robust capital & profit protection.
Effectively – STAIRS is a complete trading system (Futures & Options) that covers each of the following decisions required for a successful trading outcome:
• Markets – What to buy or sell ?
• Position Sizing – How much to buy or sell ?
• Entries – When to buy or sell ?
• Stops – When to get out of a losing position ?
• Exits – When to get out of a winning position ?
If you wish to subscribe – please use this link below or you may write to us at firstname.lastname@example.org in case of any queries.
We also run a dedicated telegram channel for STAIRS which you may join using the link below.
This is all for this week. Please stay safe and we shall meet again next week. Bye !