Posts in category All News
Stocks to Watch, July 1: Airtel, Voda Idea, Bank of Baroda, Godrej Prop (01-07-2024)
Stocks to Watch, July 1: Airtel, Voda Idea, Bank of Baroda, Godrej Prop (01-07-2024)
India’s Forex Reserves Jump By $816 Million To $653.71 Billion (01-07-2024)
StageInvesting +Elliot Waves (01-07-2024)
Compounding & Markets
Everyone is so baffled about the rise & rise of the Indian markets .
We have not seen any big correction over last four years that was a common phenomenon in the past .
To understand that , we need to understand the concept of compounding .
Linear math is very intuitive- if you ask someone what is 8+8+8+8 , you would get an immediate answer . But if you ask someone to calculate 8X8x8x8, it is not so easy. Understanding compounding is so unintuitive.
Compounding is taught in schools and people know it ,it is so obvious but comprehension of its magnitude is incomprehensible for the most.
Hope, by now ,you know that the Indian markets are also being driven by compounding of SIPs in MFs . That has been the big change in last 4 years.
It is so obvious yet the magnitude of it is incomprehensible for the most .
And keep in mind that it looks like it is still at a beginning stage , may be at 8x8 level but it is nowhere near 8x8x8x8 ….
Google buys stake in Taiwan solar power firm owned by BlackRock (01-07-2024)
At multi-year highs: These 3 stocks witness 5-year swing high breakout (01-07-2024)
BAJAJ STEEL INDUSTRIES LTD – Proxy on Agri Theme (01-07-2024)
This one is setting up well on charts if anyone’s tracking it. Textile sector has been picking up off late and it could be ripe for its second run.