By Himadri Chaterjee
US stock markets function as a barometer for the international investment neighborhood. They trade at close to $35 trillion market place-cap (more than the sum of the next 4 and about 10x of India), account for 58 of the Top-one hundred organizations by market place-cap, and also residence 5 stocks with more than $1 Tn market place-cap (of which two are greater than $2 Tn every single). No wonder the path and signalling impact of US markets is felt about the world and practically absolutely everyone in the investment neighborhood maintains at least a passing interest in the goings-on of US markets.
Indian investors wishing to track US markets can access an practically infinite quantity of sources. Here are some that I uncover helpful myself, categorized as ‘The Daily Fix’ or ‘The Long Game’.
The Daily Fix: sources that retain us up to date on each day occurrences and/or kind a trading method:
- Online publications and newspapers (which includes this one) and the prominent international ones are my go-to sources for US markets. You can even subscribe to the print editions of international newspapers, which involve the US and non-US news.
- US market place podcasts: Trading-oriented podcasts such as Squawk-on-the-Box or Mad Money with Jim Cramer can bring you up to speed on news, earnings calls and each day trends although evaluation-oriented ones like ‘The Economist’ – US edition parse the news and add their evaluation as well.
- For the trader: Online trading platforms such as Interactive Brokers and Schwab amongst other people provide investors with an exhaustive catalogue of US sector- and stock-distinct analysis. Some features may perhaps be accessible only just after opening an account, which is significantly easier below the LRS route now.
- On Twitter, you can stick to quite a few managers and traders based on your investment likes and dislikes such as Vanguard and Blackrock, or the Motley Fool amongst quite a few other people. Most will nudge you to open brokerage accounts to get the most effective insights, so focus on the news and events sections only.
The Long Game: sources that may perhaps support us kind a broader geographic or asset-class view:
- Long-operating sources such as Howard Marks’ notes, the CFA Society’s ‘The Enterprising Investor’ and even Warren Buffet and Jeff Bezos’ annual shareholder letters provide deep insight into the macro events that are shaping US corporations and therefore markets. A weekly or month-to-month ritual of brushing up on these sources may perhaps be adequate to keep abreast of the bigger image.
- Closer home, you will uncover a handful of Indian fund managers who are investing in US funds or stocks, normally by means of feeders. Since US investing is on the rise, they regularly conduct conference calls as nicely as publish notes on how they are viewing US markets. I uncover this outsider’s point of view helpful to balance the news I hear from US-based sources talked about above.
- Larger Indian wealth managers have set up item analysis desks to support consumers invest in international markets. Typically, your wealth manager or their Product Heads will be content to exchange notes.
A handful of cautionary words
- Fret not if you are not totally updated each day. Similar to Indian markets, there is significantly noise and most each day events will not influence markets. As extended as you retain in touch at typical intervals you will be capable to glean significantly of the facts out there.
- Don’t overlook Asset Allocation and diversification: if you are creating positions either in the US or elsewhere. News need to be filtered to synthesize your customized investment position, which implies working with asset allocation and diversification as effective tools to make sure your portfolio is aligned towards your extended-term objectives.
- Finally, be wary of misinformation: Everything you study is not accurate. If some news comes across as pretty sensational, please double-verify and triple-verify just before taking an investment selection. Rely on established sources and spend for subscription-based news services if required. Also, verify for powerful political affiliations of publications that kind component of your each day study, and filter these biases out of your investment thesis.
(Himadri Chaterjee is a Senior Managing Partner at IIFL Wealth. Views expressed are the author’s personal. Please seek advice from your monetary advisor just before investing.)