Please find below the 5 charts that tell interesting stories on Markets and Investing.

 

1) India v/s Other Markets:

 

1) Indian equities is trading at 22x FY23E earnings.

 

2) Indian equities is overvalued by approx 10%

 

3) All key markets continue to trade at a discount to India.

 

4) India has an ROE of 15% which is fair but not the best globally.

 

5) US, EM and Taiwan looks good for investment.

 

 

2) Nasdaq 100 – Median Price to Sales Ratio:

 

Price to Sales Ratio of Nasdaq 100 has fallen to 4.2x from the peak of 8.5x a year ago.

 

The current ratio of 4.2x is the lowest we’ve seen since 2016.

 

Not ‘cheapest’ but most definitely cheaper after the 35% decline in the past year.

 

 

3) The Sweet Spot For Markets – US Mid Term Elections:

 

1) US Markets have 4 years cycle based on Presidential Elections.

 

2) Mid Term Cycle which just got completed is relatively tough.

 

3) Historically, markets have seen a start of rally at the end of Mid Term Cycle.

 

4) Pre Election and Election Cycles are great.

 

 

4) Global Supply Chain Pressures Are Easing:

 

Supply chains were one of the biggest factors which caused an inflation spike and forced central banks to hike rates at a record pace.

 

This is now quickly getting adjusted lower.

 

Hopefully, Fed and Central Banks will become dovish and fuel rally in stock market.

 

5) China becoming less transparent:

 

The annual number of economic indicators made available by China has fallen significantly since Xi became the leader in 2012.

 

As the Chinese economy has been slowing, the Chinese Govt is reluctant to share a correct picture with outside world.

 

Valuation of Chinese Market is attractive and markets will hopefully bounce back soon. But reduced transparency and lower democracy is not giving enough confidence for new investments. 

 

Read more similar articles in our blog – https://alphacapital.in/blog/

 

Best Regards

 

Dr. Mukesh Jindal CFA, CFP, CAIA, Ph.D.

 

Alpha Research