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Zeal to Read

Weekly Newsletter

Zeal to Read

Weekly Newsletter | by 2 | on 2021-09-05 03:48

‘Prices are too high’ is far from synonymous with ‘The next move will be downward’. Things can be overpriced and stay that way for a long time … or become far more so. – Howard Marks
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News you may use

At 21.3% of budget estimate, fiscal deficit hits 9-year low

August rainfall remains 24% below normal

August rebound -Services sector expands at fastest pace in 18 months

Aug services PMI jumps to 18-month high on improved vaccine access, consumer footfall

Auto dealers staring at 30% drop in sales this festival season

Core sector output grows 9.4 per cent in July

Drugs and Pharma sectors lead growth in exports from SEZs

Exports from SEZs up 41.5 per cent to Rs 2.15 lakh crore during Apr-June 2021

Exports grow 45% in Aug, trade deficit at 4-mth high

Feeding solar power directly to Railways can save 7 mt carbon

FinMin releases Rs 13,386 cr to 25 states as grant to RLBs

GDP grows 20% in Q1, but still below FY20 levels

GST mop up tops Rs 1 lakh crore for second straight month; at Rs 1.12 lakh crore in August

IMF raises India’s special drawing rights allocation to $17.86 billion

India adds 4.5GW solar capacity in H12021, surpasses installations in CY 2020

India extends $ 100 million loan to Africa to spur post pandemic growth

India’s power consumption up 18.6 pc to 129.51 billion units in August

India’s start-up ecosystem ranks 3rd in the world after the US and China

Indian Railways register 16.87% growth in freight loading in August

India’s August power output rises 16.1%, coal-fired power by 23.7%

India’s market capitalisation to GDP ratio hits 13-year high of 122%

Manufacturing growth slows in August, PMI at 52.3

Morgan Stanley maintains India GDP growth estimate of 10.5% for FY22

Non-food bank credit grows at 6.2 per cent in July: RBI data

Non-subsidised LPG gets costlier by Rs 25

Petrol demand continues to rise in August but diesel lags, shows data

Private airports likely to double capex to Rs. 42,000 crore: CRISIL

PV sales decline; two-wheelers, CVs perform better in August

Rupee regains 72 level on bond issues, inflows – Positive Sentiment in equity markets helps too – Indian currency up 1.5% in 5 Sessions

Semiconductor shortages give car industry jitters

Views may be of use

Not All Risk is Rewarded
“Higher risk, higher reward.” This is one of the most repeated maxims in investing, and the basis of Modern Portfolio Theory. It’s also intuitive: riskier investments should be compensated with a higher return. But what should happen and what actually happens is not always one in the same.
Source: https://compoundadvisors.com/2021/not-all-risk-is-rewarded

$834 Million Every Hour
The world’s central banks have printed $834 million each and every hour of each and every day… for the past 18 months… to keep the global economy up and going. That is correct. $834 million the hour — every hour, 18 months running.
Source: https://dailyreckoning.com/834-million-every-hour/

Diversification
An asset class that I really like as a hedge against early-stage tech sector risk is real estate. The Gotham Gal and I own a lot of income producing real estate and it feels very uncorrelated to early-stage tech. But there are many ways to get diversification. If you don’t want to think about your investments, something I cannot bring myself to do, then a stock index fund or a portfolio of stock index funds, and some fixed income funds can get you the diversification you need. But the level of risk taking in that strategy is a lot lower.
Source: https://avc.com/2021/08/diversification-2/

The danger of a single-stock spiel
At the heart of my caution lies a universal truth, underappreciated in times like these. Individual stocks are very risky, irrespective of who else bought it or how strongly they feel about it. No one knows shit. Anything can happen. Every investor gets it wrong. It can get ugly, as has happened to me many times over.
Source: https://buggyhuman.substack.com/p/the-danger-of-a-single-stock-spiel

The inevitable decline of fully open platforms
The tension is simple: If a platform is carefully vetted and well-curated, it meets expectations and creates trust. If it’s too locked down and calcifies, it slows progress and fades away. Radio, TV and magazines have always been curated. Even the letters to the editor are read by someone before they’re printed. The magazines that went to the web and let just about anyone write on their sites ended up with sites that just about no one trusted. Too much curation stifles creativity, opposing viewpoints and useful conversation. But no curation inevitably turns a platform over to quacks, denialists, scammers and trolls.
Source: https://seths.blog/2021/08/the-inevitable-decline-of-fully-open-platforms/

Little Flaws
Success leading to overconfidence and complacency which erodes the traits that originally made you successful.
A failure to identify the true costs of something you’re pursuing, with too much emphasis on financial costs while ignoring the emotional price that must be paid to win a reward.
Source: https://www.collaborativefund.com/blog/flaws/

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