CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 24-May-24 | 17-May-24 | Change |
| Nifty 50 | 22,951 | 22,465 | 2.16% |
| Nifty 500 | 21,475 | 21,061 | 1.97% |
| Nifty Midcap 50 | 14,646 | 14,510 | 0.93% |
| Nifty Smallcap 100 | 16,880 | 16,859 | 0.12% |
Source: IMF, Bloomberg
Here’s the list of curated readings for you this week:
Personal Finance
· The Enduring Lessons of Arthur B. Farquhar and Andrew Carnegie: Building a Lasting Business: Arthur B. Farquhar, at 19, learned to make a million dollars by capitalizing on a factory fire. He built a successful farm equipment company, founded a hospital, and owned a newspaper. He learned the importance of trusting capable people and enduring businesses. Read here
· Transformative Shift: From Portfolio Management to Mutual Fund Strategy: The investment firm adopts a mutual fund model, focusing on undervalued stocks, fundamental analysis, regulatory oversight, shareholder activism, and proposing an index for Indian shareholders and active managers. Watch
Investing
· Impact of Interest Rate Changes on Investment Performance: A Historical Analysis: From 1975 to 2023, interest rate changes significantly impact MSCI World Index factor and sector index performance, with defensive factors and low-beta sectors performing well with falling rates. Read here
· Investment Opportunities in Indian Markets: A Comprehensive Overview: India’s growing economy and attractive investment landscape have attracted significant long-term foreign and domestic investments, particularly from the US. Despite volatility and sensitivity to factors like crude prices and the US dollar, India remains a key player in global emerging markets, with diverse sectors and substantial foreign investor interest. Monitoring macroeconomic factors and evolving equities valuations is crucial for continued growth and investment opportunities. Watch
· Gold Surges to Historic High Amid Global Uncertainty: Gold has hit a historic high despite a strong US economy, driven by global uncertainties and increased demand from central banks and retail investors, particularly in China. Trends like Costco selling gold bars highlight a shift towards tangible assets. Analysts remain bullish on gold’s value due to ongoing geopolitical and economic concerns. Watch
· Navigating Future Investments with UTI’s Score Alpha Insights: UTI’s analysis of the Nifty 500 Index shows R3 companies outperform R1 and R2 portfolios, with R3 companies improving and moving to higher RoCE tiers by 2023. Read here
Economy
· Start-Ups Dominate Booming Quick Commerce Market, Giants Struggle to Keep Up: The quick-commerce market is rapidly expanding, with start-ups like Blinkit, Swiggy’s Instamart, and Zepto dominating 88%, while giants like Amazon and Walmart struggle. The market is expected to grow significantly due to urban demand. Read here
· The Rising Costs of Indian Elections and Their Economic Impact: The cost of running in India’s Lok Sabha elections has skyrocketed, with candidates spending an average of Rs. 50 lakhs in 2019, and total spending for the 2024 election expected to reach Rs. 1,35,000 crore. This surge in spending, largely driven by campaign costs and social media strategies, means that Parliament is increasingly accessible only to the wealthy, raising concerns about underrepresentation of the less affluent. Read here
· RBI Pays Record Rs. 2.1 Lakh Crore Dividend to Government: The RBI delivered a record dividend of Rs. 2.1 Lakh crore to the central government, primarily driven by gains from foreign currency holdings, currency selling, and gold revaluation. This substantial dividend, exceeding expectations, could reduce the fiscal deficit or increase government spending, positively impacting the bond and stock markets. Read here
· Debating the Future of the Chinese Yuan: Implications for Global Investors: PauloMacro’s Substack discusses the potential devaluation of the Chinese yuan, with Louis-Vincent Gave arguing it would benefit the U.S. and set back China, despite political and economic ramifications for Xi Jinping’s administration. Read here
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That’s it from our side. Have a great weekend ahead!
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The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.