Hello
Love reading your inputs and observations.
Markets are humiliating at best and that’s why I like to call it the “TGH”. S&P 500 also hasn’t seen many two back to back years of correction. I think markets are adjusting to high inflation and interest rate scenario where in it becomes difficult/less viable for companies to raise as well as service debt. This also means additional interest cost and double whammy of inflation eating into margins/profit. I have observed in the past that cyclical companies with avg debt tend to underperform during such cycles and niche midcaps/smallcaps showing high growth ( raising capital via equity dilution) doing well.
Also 2023 becomes interesting as election years are mildly positive and hence to me chances of a new high looks probable in 2023.
Biased and will add on dips
Best
Divyansh
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