AKG Weekly Charts - Issue #47
Welcome to the latest edition of #AKGweeklycharts
This newsletter is a weekly selection of 10 charts hand-picked across internet which pertains to our investment strategy.
The charts focus on various forces and factors that influence our Investment outlook and brings an updated insight and perspective.
(1) The food inflation has been rocketing with wheat prices in particular seeing highest inflation since the data is available from 1929 depression. Given the surplus, India is looking to boost wheat exports (see here)
(2) Despite the popular notion that commodities prices are rocketing, many including Iron, coal (and Aluminium) have seen sharp contractions. As supply chains improves, we are likely to see prices settle lower.
(3) Outward remittances under LRS continue to increase in India as travel and study related expenses increase due to Covid mobility restrictions getting lifted off across the globe.
PS : As per RBI norms, all resident individuals, including minors, are allowed to freely remit $250k per FY for any permissible current or capital or both account transactions.
(4) Inflation surge has slashed $11tn from world’s negative-yielding debt. Once considered to be a regular feature of global markets, now running into sharp losses.
(5) Japan always had troubles in getting inflation back, thanks to a declining population which continues to remain within the means. But even BOJ now expecting highest inflation in last 30yrs outside (sales) tax hike years
(6) EU gets 40% of its natural gas from Russia. Gas price has dropped <100/Mwh this week. The embargo from Russia will continue to cause reverberations and headline noise. (See here)
(7) Twitter launches ‘poison pill’ to thwart $43bn bid by Elon Musk. Under the plan, if a group or individual acquires >15% of Twitter’s shares in a transaction not approved by board, then other shareholders will be able to buy additional shares at discount.
(8) China is an important mfg base for the global supply chain, with dependency up to >90% for certain categories. (Source : Bernstein)
(9) Hedge funds have built record short positions against EM shares. So far DIIs have hold forte against this. If and when inflation cools off, the stronger recovery in benchmark indices and frontline stocks can't be ruled out.
(10) Consistent growth in India's IT outsourcing revenue. The tech play despite recent correction still provides good opportunities over the next 2yrs
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The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other related transactions.