Letter #115

We have all been told that “stock markets are a slave to earnings.” While the long-term relationship does hold, what explains the mere 1% Sensex returns between Dec-93 and Dec-02 (3,287 days), or the rather modest 30% returns between Dec-07 and Dec-16 (3,288 days)?

We write in ET today that investors often look at markets as if they operate as static equilibrium; while viewing them as dynamic equilibrium could help decode the nuances of market behaviour. To read our take on the concept of static and dynamic equilibrium, and how flattish headline markets do not necessarily mean zero returns, please click here: https://tinyurl.com/2p9p7xac

Read the previous 114 articles here: https://www.buoyantcap.com/news-resources/memos/

Disclaimer:

Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies is provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.