[Newsletter] Markets At Highs But Not Costliest, Market Overview & 5 Good Reads

🔆 Saturday Coffee Newsletter

• Market Overview: Top Indices & Asset Classes

• Good Reads: 5 good reads on investing & finance

• Off the Chart: Markets at highs but not PE

• Pop Quiz: Answer and win a cool prize!

What’s up with markets? 📉📈

Except for silver, all indicators remained stable throughout the week. Despite witnessing volatile intraday movements, crude oil ultimately ended the week without any significant change. On a year-long timescale, both bullion and the Nifty 50 index have performed admirably.

In contrast, crude oil has experienced a substantial 38% price decline over the course of the year, which has been favorable for India.

This week, auto stocks emerged as the top performers, showcasing a remarkable role reversal, while IT stocks experienced a downturn and became the worst performers. Looking at the broader picture over the past year, PSU bank stocks have exhibited an impressive gain of 57%, positioning themselves as the best performing index.

On the other hand, sectors such as media, oil & gas, and IT have yielded negative returns during this period. Overall, the NSE 500 index has witnessed a solid 14% increase over the last year.

Sensex 30 PE ratio ⭐

Despite trading near its All-Time High, the Sensex 30 currently boasts a PE ratio that is significantly lower than it was during the previous ATH. This indicates that earnings have made significant progress, and although stocks are nearing their ATH, they are now better valued compared to the previous ATH.

What we are reading 📝

Money is like gasoline during a road trip. You don’t want to run out of gas on your trip, but you’re not doing a tour of gas stations. Read: Plan less, Live More

Fear protects us from commonsensical physical harm, but in most other ways fear hurts us. Read: Conquer Your Fears

When it comes to manager selection and the active vs. passive debate keep the following six points in mind. Read: Active vs. Passive Revisited: Six Observations

For indeed, the investor’s chief problem and even his worst enemy is likely to be himself. If you can overcome yourself, you’ll be better off than most investors. Read: How to Stop Being Your Own Worst Enemy (in Investing)

What are the habits that can set you up for financial freedom? Read: Wealthy without luck

Pop Quiz 🙋‍♂️

Identify this person?

Piloo Mody, Member of Parliament from erstwhile Swatantrata Party, said this about him -

He is not wealthy. All the shares are in trusts, whatever he inherited personally is also in trust. In any case, he pays 97% of his earnings as Income Tax; then, he pays wealth tax which takes his tax rate over a 100%. His entire income goes in taxes and he has to sell some of his assets each year to live on.

Who is being referred here. Identify.

Hit reply to this email and answer.

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

Last week’s winner: Nithin Lakshmanan 🎉

Last week’s answer: Android

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