[Newsletter] Market overview, CM Chase performance review & 5 good reads

🔆 Saturday Coffee Newsletter

• Market Overview: Top indices & asset classes

• Performance Review: Long short trend following strategy

• Good Reads: 5 good reads on investing & finance

• Pop Quiz: Answer and win a cool prize!

What’s up with markets? 📉📈

This week, Brent bucked the trend to fall 3.2% while Nifty and Gold also fell at little under 1%. Over 1 year period, Silver is up by 25% and gold is up by 13%.

Yet again, this week belonged to media stocks. PSU Bank, Consumer Durables and FMCG were the only other indices up this week. Over 1 year period, PSU banks are still the best set of stocks out there.

What’s up with Chase?

Capitalmind Chase is a Nifty Futures trend-following strategy that aims to generate alpha over the market in the long run.

There are two components of Chase – active and passive. For the active component, we take a long or short position in Nifty Futures, and for the passive component, we are long on a Nifty ETF..

YTD 2023, CM Chase is up 9.2% with lower volatility than the Nifty. In this post, we analyse how the strategy has performed over the last seven months (1 Jan – 31st July 2023) and since its inception.

Read: ​Capitalmind Chase - Braving Whipsaws and Staying the Course​

What we are reading

• When you stray from your circle of competence, bad things can happen - ​Warren Buffett’s Rare Big Investing Mistake​

• Forty life lessons — with a Kingswell twist - ​40 Years, 40 Lessons​

• RBI tweaked the CRR ratio for a temporary fix and here’s everything about it - ​RBI is firefighting cash​

• We’ve grown up believing that practise makes perfect, here’s a contra view - ​The false promise of the 10,000 hour rule​

• SIP Vs Lumpsum investing debate is an old one, here’s one more perspective to it - ​There is a fine line between stupid and clever

Pop Quiz

This company is now a conglomerate but it started off as a brand known for household products. The brand stood for safety and security, and its Indian roots.

Among all its achievements, this company takes the most pride in making India’s first voting ballot box in 1952 and also all other ballot boxes used in that election.

Identify this company

Hit reply to this email and answer.

Hit reply to this email and answer.

(If you’re reading this on the website and want to participate in the quiz, subscribe to the newsletter.)

Each week, we randomly pick one winner who gets something cool!

Last week’s winner: Ravi B.

Last week’s answer: X = Facebook (meta), Y = Fb.com

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