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Zeal to Read

Weekly Newsletter

Zeal to Read

Weekly Newsletter | by 2 | on 2021-07-18 11:44

“Your success in investing will depend in part on your character and guts, and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.” – Jack Bogle
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News you may use

After S&P Retains India Rating ….. Funds Likely to Keep Flowing into Indian Debt and Equity

Business activity back to pre-2nd wave levels of March 2021: Report

Car Dispatches Make a Quick Recovery in Jun -Easing curbs, pent-up demand help, but high input costs, chip shortage are concerns

Factory Output Rises, Retail Inflation Softens-Low base helps industrial production grow 29.3% in May; June CPI at 6.27% above RBI’s target band

FPIs Turn Bullish on Insurance Stocks-At ₹7,044 crore, FPIs invest 41% of their total June inflow of $2.3 bn in these stocks as premium collection picks up

India is among the least prepared countries for automation in Asia-Pacific: Report

India’s agricultural exports will cross $40 billion in FY22: NABARD Chairman

Indian tea exports likely to fall nearly 15 per cent in 2021

June WPI Inflation Falls to 12.07%

MFs see record SIP registrations in June at 2.13 mn on strong equity show

NTPC set to construct India’s largest solar power park in Kutch

Over 90% jump in direct tax receipts in Q1, annual target may be surpassed

Petrol Sales Above Pre-Covid Levels as Economic Activity Gathers Steam – Diesel, jet fuel demand also rises in first half of July but still lower than pre-pandemic levels

Power demand in India expected to grow 6 pc in FY22: Icra

RBI Allows Individuals to Directly Invest in Govt Bonds, Opens Separate Window

RBI Unlikely to Raise Rates Soon Despite Inflation Spike-Inflation largely due to supply shocks from covid disruptions: RBI study

RBI: Near-term prospects for eco brighter

Retail inflation above 6%, IIP up 29% on low base effect

Sugarcane area to go up by 3% to 54.55 lakh hectares: ISMA

Tractor sales soar in June on pent-up demand, robust rural economy

Views may be of use

How Description Leads to Understanding
Accurate description requires the following: (1) Observation (2) Curiosity about what you are witnessing (3) Suspending assumptions about cause and effect It can be difficult to stick with describing something completely and accurately. It’s hard to overcome the tendency to draw conclusions based on partial information or to leave assumptions unexplored. One way to begin understanding complex systems is by describing them in detail: mapping out their parts, their multiple interactions, and how they change through time.
Source: https://fs.blog/2021/07/description/

24 Hours
Even if you never have kids or a family, your life is what’s happening around you every day.  Embrace all the little things like a walk, a good dinner with friends, or a trip to someplace new. If someone says “hey, let’s go out,” never turn that down, because an unexpected adventure may lie ahead of you.
Rose Kennedy once said, “Life isn’t a matter of milestones, but of moments.”
Each moment is special. The clock may be ticking but your life is lived by the second, don’t waste any of them.
Source: https://blog.rwbaird.com/blogpost/1527/24-hours

Disclosure Dilemma: When more (data) leads to less (information)!
In the last few decades, as disclosure requirements for publicly traded firms have increased, annual reports and regulatory filings have become heftier. Some of this surge can be attributed to companies becoming more complex and geographically diversified, but much of it can be traced to increased disclosure requirements from accounting rule writers and market regulators. Driven by the belief that more disclosure is always better for investors, each market meltdown and corporate scandal has given rise to new reporting additions. In this post, I look at trends in corporate reporting and filings over time, and why well-meaning attempts to help investors have had the perverse effect of leaving them more confused and lost than ever before.
Source: http://aswathdamodaran.blogspot.com/2021/07/disclosure-dilemma-when-more-data-leads.html

Too Smart
Wealth might be a sign of good decisions, but can those decisions be repeated? And do good decisions in one field translate to wisdom in other areas of life? Maybe, maybe not – that’s the best we can say. And there are times where exceptional wealth can prevent empathizing with ordinary people, making insight more precarious. A similar mistake, a bit harder to grasp, is the assumption that smart people have the right answers.
They may. But does intelligence in one field convert to others? Does being good at taking tests translate to, say, leading groups of people
Source: https://www.collaborativefund.com/blog/too-smart/

Analysts playing the lottery (stocks)
Playing the lottery is commonly frowned upon by educated people as a “tax on people who are bad at maths”. And that’s true, playing the lottery may be “a bit of fun” but it is costly fun because on average you lose money for the small chance of winning the jackpot. It’s a bit like smoking. If you do it once it is fun, but do it long enough and it will become very costly indeed. The problem is that while it is easy to see that playing the lottery is a losing game, lotteries come in different shapes, and even highly trained analysts and portfolio managers engage in playing the lottery. In this case, I am talking about lottery stocks, i.e. stocks that have a lottery-like payoff where the most likely outcome is a negative return on investment but there is a small chance of a very large profit.
Source: https://klementoninvesting.substack.com/p/analysts-playing-the-lottery-stocks

The Biggest Differences Between Now & The Housing Bubble
It’s important to remember you can’t look at a single variable — price — to make your housing decision. Yes housing prices are a factor but so are interest rates, taxes, how long you plan to stay in the home, the ancillary costs of homeownership, your budget, your income and so on. Don’t avoid buying a house because you think prices are too high. Avoid buying a house if you think your financial circumstances don’t warrant buying a house right now. The housing market plays a large role in shaping the macroeconomy. But your personal decision to buy a home or not should be based on your own personal finances, not some macro forecast about housing prices.
Source: https://awealthofcommonsense.com/2021/07/the-biggest-differences-between-now-the-housing-bubble/

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