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

 

1) Global Equity Markets are looking up in 2023:

 

Despite the fears of recession in 2023, the global markets are going up. 

Cooling of inflation, correction in commodity prices, expected reduction in interest rates, China opening up after Covid and attractive equity valuation is fueling the growth. 

 

Nasdaq (US Tech Index) has gone up by 10%. 

 

Hang Seng (Hong Kong Index) has gone up by ~15%. Chinese equity has gone up by ~53% in the last 3 months. 

 

Indian market has been seeing correction due to relatively expensive valuation. Hopefully, Indian equity will also catch up with global markets soon. 

 

 

2) India is the Land of ’10 Baggers’:

 

Between 2001 and 2011, 38% of stocks in the NSE 500 grew by more than 900% to become 10 Baggers.

 

During 2011 and 2021, 20% of the stocks became 10 Baggers.

 

India had a maximum number of 10 Baggers globally.

 

India is the land of wealth creation. The best way to catch these multi baggers is by investing in mid cap and small cap stocks. 

 

 

3) Gold is a Trading Vehicle and not an Investment Vehicle:

 

Gold has been outperforming equities over the past 12 months.

 

However, it is breakeven over 3 years despite high inflation, and on a longer timeline, it lags, often dramatically.

 

Since 1980, Equities have demolished Gold. 

 

Investors can consider investing in Gold only if they are fond of Gold as a commodity. 

 

The best way to invest in Gold is through Sovereign Gold Bonds which gives additional return and has tax benefits. 

 

 

4) What is expected in this Election Budget?

 

Government Capex is expected to pick up ahead of the central election of 2024.

 

Government awards picked up 12-18 months prior to every central election.

 

The budget of 2023 is going to be all about the announcement of big

Central Govt spending.

 

Pressure will be on taxes and debt yields.

 

 

5) Are you Trading in Stock Market Derivatives?

 

If yes, then you are most probably losing money.

 

As per the recent SEBI study, 89% of derivative traders lose money. Interestingly, active traders lost more money. 

 

Due to Covid lockdowns, derivative traders went up by ~6 times in India during the last 3 years. 

 

Derivatives should be used for hedging and not for trading.   

 

 

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

 

Best Regards

 

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

 

Alpha Research