HX Research’s Post

The relationship between interest rates and the stock market is a complex one. Especially because the relationship changes depending on many variables. The fact is that sometimes rates matter a lot. Sometimes they don’t matter almost at all. Where are we right now? We discuss this in today's issue of HX Daily here…

I have always found the Shiller P/E Ratio to be a timeless measure of the stock market's current cost. Check out my article on the subject!

The stock market goes down once every four years, on average, and bear markets are a regular occurrence (once every five years, on average). That's the price to play, without which there would be no reward. From my new book: Money, Simplified. https://amzn.to/3HxQE9V

LIQUIDITY is very strong in our Markets. Global Markets esp MAGNIFICENT 7 had run up too much in too less a time, so they seem to be correcting. Since they have a huge weightage in SP500 & NASDAQ the falls look BIG. Our Markets are in BULL ORBIT however much we may crib about the swiftness of the Run up or Valuations in the SMID segment. Surprisingly, the NIFTY P/E (TTM) is around 23 even at these seemingly "elevated" levels. The last BIG TOP was made in October 2018 at a Nifty p/e of 28. If you go only by that metric, then we are still some way off for a Significant TOP. However, many RDX stocks have gone out of whack, so we may yet have a 2018 kind of scenario where Nifty corrects & bounces back & makes new ATHs, while MIDCAPS/SMALL CAPS keep correcting ONCE the BIG TOP is made. Personally, I am keeping a 2 day closing BELOW 24200 for me to TURN BEARISH. Right now we are fully invested in Oil & Gas, PSU Banks, Pharma, Paper & Textiles sector apart from a few stocks which have a P/E of around 15.

In this week's Global Stock Update I address; - US inflation picks up and changes the tone of markets - Where to for markets from here - There's a real party going on for some Aussie small caps - Gold sector into over-drive #asx #stockmarket

A&B believes that technical analysis will have the dominant impact on the performance of the US stock market in the coming week starting 16 December 2024, and this will result in a higher volatility in the market and contrary performance among indices. Fundamentals will have a minimal impact, especially at the beginning of the week. In our view, the press release by the Fed Chair following the meeting will be much more important that the interest rate decision, and it will impact the performance of the market starting Wednesday. Check our detailed analysis in the attached report. Contact us for more details!

🚀 My colleague Carl Capolingua has delivered an absolute banger on ASX bank stocks. While the Big Four have been powerhouses in 2024, their returns are modest in the grand scheme of things - making this year more of a "catch-up" phase. The big question now is: where to from here? Dive into the first installment of his cracking three-part deep dive into this crucial sector on Livewire/Market Index: https://lnkd.in/gwPFS7d4

Q. “What is upper circuit and lower circuit?” A. Upper circuit and lower circuit are limits (in percentage) to which a stock or index can move. Example: upper circuit for a stock is 5%. This means if the stock rises 5% within a trading day, upper circuit will be applied. Similarly, lower circuit applies when stock prices fall drastically. When the circuit limit is hit, trading of that stock is paused. Why is upper circuit or lower circuit applied? The idea is that when a stock price is moving too fast, it is happening purely because of panic - and not because of justified reasons. The circuit limit pauses trading and allows investors to gather more information. It helps reduce panic. It encourages investors to invest based on solid reasons. Circuit limits apply in different manners for different stocks and indices.

Stock Market Manipulation: The Magnificent 7 and Artificial Prices #artificialstockprices #healthyeconomy #impendingcrash #Magnificent7 #marketmanipulation #marketmanipulationtechniques #stockmarketanalysis #stockmarketindicators #stockmarketmanipulation #stocksurge

Stock Market Manipulation: The Magnificent 7 and Artificial Prices #artificialstockprices #healthyeconomy #impendingcrash #Magnificent7 #marketmanipulation #marketmanipulationtechniques #stockmarketanalysis #stockmarketindicators #stockmarketmanipulation #stocksurge