Some stuff I am reading today morning:
More ‘shell shocks’ are in store (ET)
Bajaj Finance’s $700M QIP (Mint)
Stocks too are known by the company they keep (BL)
Being a stock picker is just so hard (Barry)
Stock Talk: CSL Finance (RJ)
IPO Review: Apex Frozen Foods (My Investment Ideas)
Tesla shows how traditional business metrics are outdated (HBR)
US Trade War with China begins today (Zero Hedge)
Fire & Fury Time (DR)
How to get mentally prepared for a market decline (Humble $)
Here are the most clicked items on Alpha Ideas this week:
Portfolio of Ramesh Damani (AI)
Nandan Nilekani Presentation on Indian Banking (AI)
How D S Kulkarni cheated everyone (Vijay Kumbhar)
Notes from Edelweiss Investor Day (Amit Jeswani)
Infosys and NRN (AI)
The next bull market is in Lithium (Yahoo)
CAs share a DNA of trickery and perhaps fraud (Outlook)
Reliance- The Bull Market Leader? (AI)
A Father’s advice to his daughter (AI)
Chart: Sensex CAPE is still cheap (AI)
Some off beat reads for the weekend:
CAs share a DNA of trickery and perhaps fraud (Outlook)
Modi’s double edged farewell to VP Ansari (Jaggi)
Trump is horribly witless about the world (New Yorker)
Peter Thiel’s secretive company Palantir (Wired)
How Britain fell out of love with the free market (Guardian)
A Fraternity hazing death (NYTimes)
A Vietnamese kidnapping in Berlin (Forbes)
The complete history of the IBM PC (Ars Technica)
At the Mahindra Off Roading Academy (Team BHP)
Movie Review: When Harry met Sejal (Great Bong)
BJP’s plans to breach Fort Amethi (Gossip Guru)
How Pradeep John became TN’s Weatherman (BI)
Prateik Babbar on his drug addiction (Mid Day)
Aspirin’s 4000 year old history (Smithsonian)
Ownership Review: Vitara Brezza (Team BHP)
Source: Sage One Investments
Look at Cyclically Adjusted PE (CAPE) ratio which is developed by Professor Robert Shiller and is defined as price divided by the average of ten years of earnings (moving average), adjusted for inflation. This ratio addresses the issue of margin volatility during an economic cycle.
Please note that Sensex CAPE had reached a high of 48.1x in December 2007 and currently we are less than half of that level.
Source: Tom McClellan
