Snapshots that wow!

Ek lakshya, raaste anek

There are over 2.5x the number of funds (MFs and ETFs) vs. the number of stocks traded in the US. Alternatives such as Hedge funds, PE funds, etc. are above and beyond this number as well!

Source :WSJ

The American Dream

At the height of Japan bubble in 1989. Japan was 12% of global GDP but 48% of global market cap.

How long can ETFs and pension funds sustain this disparity we are seeing in the US markets today. 18% of the world’s GDP but 70% of the world’s market cap!

Source: Gavekal Research

We are not numb, we are unaware!

It is said that investors have become numb given the velocity of the corrections, and liquidity ensuring every correction is quickly being bought into. I would reckon, we aren’t numb we are simply unaware of how equity markets used to work; how the last decade has been an aberration.

Source: Capitalmind

In the long run, long run itself is dead!

The collapse in the average US equity holding period from 5 years to 10 months over the past five decades shows one thing- in the long run, we let our instincts get the better of us

Source: IMF

Ooh, aah let the music play!

But the power source to the party might give way!

“Stake sales across 20 companies by promoters aggregated Rs 40,000cr and outstripped the inflow into the domestic mutual funds (Rs 39,100cr in May 2024). This is not a one-off, secondary market sales by promoters and of private equity stakes since April 2022 has been Rs 4,42,000cr compared to gross SIP flows of Rs 3,96,466cr and overall net inflow of Rs 5,02,070cr into mutual funds. These have accelerated as market multiples have risen, stake sales were up 48% yoy in FY24 and Q1FY25 alone has seen supply equivalent to 45% of FY24 come to market.”

Source:Axis MF

Take a minute, look around

There is beauty all around that endures.

Bombay High Court.