UNFORGIVING – Markets continued on it’s downward journey with Nifty losing (-3.83%) in the last week and almost (-10%) in the last month. We have stayed in a range between 15671 & 18604 for about 7 months and the upcoming week will be crucial as we are close to 15671 which is an important support level. Nifty Jnr & Smallcap 250 witnessed a difficult erosion this week losing (-7.05%) & (-7.1%) respectively. Smallcap 250 index is now down (-16%) in the last 30 days & is currently at a (-21.36%) drawdown. Despite this fall, we must admit that Indian markets seem to have taken a lesser hit compared to a few other popular global indices.
From the sectors, METALS & IT lost more than (-10%) while it seems markets have taken refuge in AUTO , FMCG , PHARMA & CONSUMPTION. WeekendInvesting strategies also have taken a massive beating owing to the sustained weakness in the markets. All absolute momentum strategies barring 1 or 2 now have more than 50% allocation in CASH while rotational momentum strategies stick to the relatively strongest stocks within the universe.
As we have repeatedly said – it is during such times that conviction of an investor is put to test. If you are following a strategy and you are here for the long term , you need not worry and rather continue your SIPs. Performance is updated below.
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.
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.
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.
All STAIRS models did extremely well capitalizing on the recent downward trend. You may go through the Weekly Review
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 ?
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 !
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