• GoalTeller
  • Posts
  • China Equities - Is Opportunity Knocking I AI driving markets I Ferrari to launch an EV

China Equities - Is Opportunity Knocking I AI driving markets I Ferrari to launch an EV

Weekly Insights and Impact

Author

GoalTeller Research Team
September 15, 2024

China Interest Rates (10 years at an all-time low) while equities at yearly lows
Several monetary and regulatory measures aren’t able to stop the rout.

  • Both US and Indian markets rebounded from crucial support levels last week.

  • Domestic liquidity continues to be very strong with 37k cr of net equity fund inflows in Aug.

  • Domestic Equities continue to look overvalued especially in the macro context of tepid earnings, higher-than-expected inflation nos, concerns on the US political scenario, and potential disruptions in the Indian political situation.

  • Our stance - Markets could continue this run upto the festive season with the next big triggers emerging from the US election outcome and hence we recommend to keep rebalancing the portfolio every 2 weeks henceforth i.e. Keep selling equities and getting the levels back to your asset allocation.

  • In bull markets one conjecture we hear very often about individuals not willing to sell is taxes and we wish to re-emphasise that taxes should not be the primary factor especially when the portfolio is deviating from one’s asset allocation.

  • Some interesting reads below on AI, how Nvidia is driving US markets and Ferrari launching an EV.

Book Highlights – Fortune’s children – The house of the Vanderbilts

As I see the grandeur of the Ambani wedding and the billions being spent, a thought goes to the Vanderbilts, possibly the richest man in the world during the late 1800’s and the story of their lavish lifestyles and how the entire wealth was blown away in extravagant spending, bad investment decisions and a lazy lifestyle.

A quote from the book

“Any fool can make a fortune,” the Commodore had told his son William, whom he still called Billy, shortly before he died. “It takes a man of brains to hold on to it after it is made”.

P.S – It’s a boring read 😊 but do google it and see how fortune can change drastically in just 1-2 generations.

Some random musings on investing