Abu Dhabi Commercial Bank’s Post

Raamdeo Agrawal has offered valuable advice to investors regarding market conditions, emphasizing the importance of staying invested even when markets reach record levels. He advocates against exiting the markets during all-time highs, stating that markets at record highs are often part of a bullish trend. Agrawal suggests that investors should continuously shuffle their portfolios to adapt to changing market dynamics. He highlights the risk of retail investors getting stuck with underperforming stocks while larger fund managers pick more promising investments.

#MarketEthos: The shift from active management to passive has been applying steady selling pressure. This, combined with the U.S. equity market outperformance has distorted global #equitymarkets. Though the markets are not broken, it has made them riskier. https://ow.ly/fNiR30sAp93

Equity markets, during the week ending July 19, posted their weakest performance in about three months. Rotation away from mega-cap tech into other segments continued and commodity prices fell sharply. In our Market Insights, we discuss the drivers behind market performances. See more insights and disclaimers at adcb.com/marketinsights.

Institutions reduced their exposure in equity markets by a net of nearly $14.05 billion over the course of the month, down from $19.79 billion in July and lower than the average of $23.33 billion per month over the past 12 months, according to the latest data from S&P Global Market Intelligence. https://lnkd.in/d8k2utyd #institutionalinvestors #hedgefunds #retail #indexfunds #etfs #equitymarkets #investing #marketintelligence

» Our work suggests that continued strength in the private sector will drive economic growth in the months to come. » We expect to see broader equity market participation this year as earnings growth expands beyond the narrow group of technology-oriented stocks that led last year’s gains. » Tactical shifts in fixed income have focused on securing current high levels of income by emphasizing defined maturity intermediate duration holdings. » Investors over-allocated to money markets and T-Bills may witness a swift decline in interest income with falling interest rates.  

New reports show how consumer activity continues to influence the economy. In this environment, one fund worth considering is QLC (FlexShares US Quality Large Cap Index Fund), which provides exposure to the long-term growth potential of US-based large-cap companies. The fund screens the top US corporations, evaluating factors like value, quality and momentum. Our research has found that applying investing factors when building a large-cap stock portfolio may deliver the potentially stabilizing benefits of large-cap stocks plus the potential for enhanced performance, making QLC a suitable investment option during economic uncertainty. For further information, please visit https://hubs.li/Q022fm_T0. #largecapstocks #largecapstockportfolio #USlargecapinvesting #consumerdata #financialadvisor #economy [Event: Retail Sales Advance MoM, Event Release Date: Sep 14 2023 8:30AM EST. Event Period: Aug. Survey: 0.10%. Actual: 0.60%. Result: Higher than Survey. Source: Bloomberg]

Here's a valuable insight: The turn-of-the-month trend seeks to analyze if there are seasonal factors impacting a security's performance at the beginning of a new month.    Over the last 10 years, we've noticed that investing in the FMCG sector one day before July 1st and exiting three days after has resulted in a profit every single year. Here's some extra data for investors who engage in informed investing. Disclaimer: https://lnkd.in/dhfnh6EZ #AxisDirect #SimpleHai #StockMarketInvesting #StockMarketAnalysis #InformedInvesting #StockMarketIndia #FinanceEducation #Investment #InvestmentStrategies #StockMarket #InvestmentAnalysis #FMCGSector

An uptick in exchange margin requirements caused a decrease in positions, primarily in mid and small caps. Aside from the pharma and IT sectors, selling was widespread, with notable struggles seen in PSU banks. The premium valuation gap between mid to large caps has notched to its all-time high. Despite a robust economic forecast, corporate earnings are expected to slow due to moderated operating margins. It is going to be a challenge for the broad market to sustain the premium valuation. Large caps are predicted to excel amid consolidation.

To help shed some light on the latest market selloff, LPL Financial - Research has put together some insights around potential causes of this market movement as well as some considerations on how to move forward. Of note, LPL suggests remaining invested and patient and “most importantly, don’t panic.” Click the link below to read the full article.

Looking ahead to 2024...... The S&P 500 has rallied 19% so far in 2023, helped by a resilient US economy, falling inflation, and enthusiasm for AI-related stocks. Our UBS CIO thinks global growth is likely to cool in 2024 as high interest rates weigh on activity. Read here for an overview on what investors can possibly expect in the year head.