How Long Before Markets Recover from the Banking Crisis?

The actual risk posed by the notional treasury losses in the banks’ books is evident in this chart published by the FDIC.

The End of Banking Crisis

Here’s an extract…

Ironically, sixteen years after 2007 subprime crisis, the central banks in West are once again caught napping. And big banks seem to be in no mood to acknowledge the crisis in their backyard.

In February 2023, Credit Suisse assigned zero lending value for bonds issued by Adani Group’s listed subsidiaries.

Weeks later, auditor PwC reported material weaknesses in Credit Suisse’s own books of accounts and internal controls.

That’s not all. Swiss authorities plan to impose losses on Credit Suisse bond holders as part of the bank’s rescue plan.

Tanushree on how long before markets recover from the crisis…

http://www.eqtm.in/Qc54L

Quick Survey

Which are your favourite investing themes presently?

Please go here and participate in this ANONYMOUS survey.

https://forms.office.com/r/4PHryxydEK

Why are we asking you this?

So we can offer you more data, screens and other tools on your favourite themes on Equitymaster itself.

Do take the time and participate in this quick survey.

After all, there's only 1 question to answer!

https://forms.office.com/r/4PHryxydEK

Thank you
Team Equitymaster

Ohio farmer Samuel Benner made this market cycle chart in 1875

As a prosperous Ohio Farmer, the 1873 market panic was a blow for Samuel Benner, and it wiped him out. When trying to understand why this happened, Benner discovered the notion of market cycles.

As a farmer, Samuel knew that the seasonal cycles affected crops, which then affect supply and demand, which affects the price. Benner looked deeper into these cycles and found an 11-year cycle in corn and pig prices with peaks every 5/6 years. This matches the 11-year solar cycle. Benner figured that this solar cycle affects crop yield, affecting revenue, supply/demand, and price.

Many of the peaks and valleys are off by a year or two, but it looks close. Some of it might be explained by randomness of the markets.

Top Defence Stocks to Watch Out as India Approves Rs 70,500-Crore Order

India’s recent purchase of military equipment worth Rs 705 billion (bn) has given a fresh boost to the defence sector.

http://www.eqtm.in/r9Z5R

Profit Hunter - Here's How Pidilite and IKEA Can Help You Find Your Multibagger Stock

Find out what ingredients are required to discover multibagger stocks.

http://www.eqtm.in/o5GDk

Steel Stocks Deserve a Place in Your 2023 Watchlist

Like lithium, steel demand may soon have it its own gold rush.

Steel Demand to Soar

Here’s an extract…

The Indian government is seeking to modernise roads, rail networks and ports in attempt to compete with China as a manufacturing hub. So, according to the World Steel Association, India’s steel demand could soar to 200 m by 2030. This will make India the highest steel consumer amongst major economies.

Add to that the demand for steel in the aftermath of earthquakes in Turkey. Rebuilding and reconstruction of Turkey after the devastating earthquakes is expected to cause global massive demand for steel.

In 2021, Turkey’s crude steel production exceeded 40 million tonnes (m). Of this, more than 22 m was exported, making it an important player in the world steel trade.

How will these impact steel stocks? Read on…

http://www.eqtm.in/Cn39R

The Age of AI has begun | Bill Gates
https://www.gatesnotes.com/The-Age-of-AI-Has-Begun

OneWeb launched its final 36 satellites on 26th March 2023 to complete a constellation of 618 satellites. Earlier in the day, the company announced the satellites were deployed and contacted in space by NewSpace India (NSIL), the commercial arm of the Indian Space Research Organisation (Isro), from the Satish Dhawan Space Centre in Sriharikota.

Headquartered in London, OneWeb has offices in Virginia, US, and a satellite manufacturing facility in Florida - Airbus OneWeb Satellites - that is a joint venture with Airbus Defence and Space. Bharti Enterprises is the largest shareholder in the British company, commanding a 30% stake. French satellite operator Eutelsat, the UK government, and SoftBank are some of the other large shareholders.

#Spacetech stocks are ones to keep on the radar.

A Failing Business that Created a Super Investor

Can buying the stock today create the super investors of tomorrow?

Failed Business to Multibagger Stock

Here’s an extract…

When Bhaskar Bhat took over the company in 2002, Titan was in very bad shape. Titan had made a huge investment on a new factory to manufacture watches in 1980s. But when outsourcing became the norm, Titan wasn’t quick enough to make the transition. All this while, the company had also been borrowing money to fund its international expansion.

Most importantly the board of Titan wanted to shut down Tanishq, then a loss-making brand of international jewellery exports.

Tanishq’s launch in India was also jittery. The concept of branded jewellery was then ahead of its time. Indians preferred their traditional family jewellers. Habits were hard to break. Even a McKinsey study recommended the board of Titan to wind up Tanishq.

So, how did the stock become a multibagger? Read on…

http://www.eqtm.in/Td3y5

The US had 30,000 banks back in 1921. Today it has about 5,000. Jason Zweig explains why fewer and better regulated banks are a must have.

Why Kalyan Jewellers Share Price is Falling

Kalyan Jewellers’ shares have fallen 5% over the last five days. Here’s why.

http://www.eqtm.in/q9K5W

India's Spacetech Stocks in the Making

Why companies like Agnikul Cosmos, Skyroot Aerospace, Digantara, Dhruva Space and Pixxel are worth keeping a close watch on...

http://www.eqtm.in/w5KFd

Profit Hunter - Buy The Fear: Is It Time To Follow Buffets Advice?

The market mood index, a sentiment indicator is in deep fear zone, find out what you should investors do

http://www.eqtm.in/d5QRz

10 Of The Best Investing Podcasts On The Planet (2023) https://acquirersmultiple.com/2023/04/10-of-the-best-investing-podcasts-on-the-planet-2023/

Can a Stock Like Titan Create More Super Investors?

In recent quarters, competition has started nibbling into Tanishq’s profits.

Can Titan Create More Super Investors?

Here’s an extract…

Just last week, Tanushree explained how Titan transformed itself from a failing business to a mutibagger.

So much so that the stock ended up being the jewel in the Tata crown.

Also, its returns over last two decades turned investors like the late Rakesh Jhunjhunwala into super investors.

But it is important to note that the contribution from the gold business (Tanishq) and the sharp spurt in gold prices have been instrumental in Titan’s fortune.

Question is, can the stock of Titan continue to deliver irrespective of the upside in gold?

Also, does the business have enough steam to generate earnings growth when valuations are already steep?

http://www.eqtm.in/Fg24S

Sometimes narratives can become very dense and that’s why you need numbers to keep your discipline. In fact, when I start my valuation class, I have 350 MBAs who take my class and it’s in an amphitheater. I start with the question, how many of you are more naturally number crunchers? And about 200 put up their hands; ex-bankers, recovering accountants, auditors, actuary, scientists, mathematicians. And the other 150 are natural storytellers, liberal arts majors because MBA programs have become incredibly diverse.

And I tell them what my endgame for the class is, I said, by the end of this class, and I turned to my number crunchers, I said, look, I hope you have enough belief in your own imagination that you’re willing to let go because they’ve spent a lifetime being told that being subjective is a weakness, making judgments about something is a weakness. And then I turn to my storytellers, I said, by the end of this class, I hope you have enough confidence with numbers so you’d become a disciplined storyteller. Listen in to Aswath Damodaran