Capitalmind LIVE: Should you invest in holding companies?
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong”
— George Soros
What’s up with markets? 📉📈
This week, two tata companies top the list on either side of the line. Tata motors gained 7.7% while Titan plunged by 4.7%. Another Tata behemoth, TCS, gained 5.1% backed by strong earnings.
Crude was below $80 last week and it seems we got too happy, too soon. It gained back 7.9% this week and ended at $84.8 per barrel. Just where it was last year. Similarly, the Nifty 50 is where it was last year.
INR has depreciated by 10% over the last 1 year and thus also helped Gold gain in value which is now up by 17% this year.
Of the Chart 📊
The price-to-earnings (P/E) ratio is a measure of the price of a share relative to its earnings. This ratio can be calculated for the index as well. Here’s how the P/E ratio of Sensex stands now compared to its historical trend.
What we are reading? 📝
It is madness for an investor to have anything else in mind other than the operating realities of the underlying business. Read – The Investor’s Investor
The markets are in the midst of a sea change, similar to the sea change that occurred in the early 1980s when interest rates began their 40-year decline. Read – Interest rates for stock growth