The US equity markets act as a barometer for the global investment community. They trade with a market capitalization of nearly $ 35 trillion (more than the sum of the next 4 and roughly 10 times that of India), constitute 58 of the top 100 companies by market capitalization, and also house 5 stocks with market capitalizations. greater. of $ 1 billion (two of which are more than 2 tons each). It is no wonder that the direction and signaling effect of the US markets can be felt around the world and that almost every member of the investment community has at least a passing interest in boosting the US markets.
Indian investors seeking to pursue US markets have access to a virtually unlimited amount of resources. Here are a few that I myself find helpful, categorized as “The Daily Fix” or “The Long Game.”
The Daily Fix: Resources to Stay Up-to-Date on Daily Events and / or Form Business Strategy:
Online Publications and Newspapers (including this one) and International Highlights are my top sources for the US markets. You can even subscribe to print editions of world newspapers that contain news from the US and other countries.
For the Trader: Online trading platforms, such as Interactive Brokers and Schwab, offer investors, among other things, a complete catalog of the US industry and specific research on stocks. Some features may not be accessible until an account is opened, which is much easier now with the LRS path.
On Twitter, you can follow many managers and traders based on your investment likes and dislikes, such as Vanguard and Blackrock or The Motley Fool, among many others. Most will trick you into opening broker accounts to get the best information. So focus on the news and events areas.
The Long-Term Game: Resources That Can Help Us Build a Broader Geographic or Asset Class Vision:
Long-Term Resources such as Howard Marks Notes, CFA Society Business Investor, and even Annual Letters to Warren Buffet shareholders and Jeff on Bezos’ deep insights into the macro events that shape American businesses and therefore markets. A weekly or monthly ritual to update these resources may be enough to keep you updated on the big picture.
Closer to home, you will find some Indian fund managers who invest in US funds or stocks, usually through feeders. As US investments increase, they frequently hold conference calls and post notes on their assessment of the US markets. I find this outside perspective helpful in countering the news I hear from the American sources listed above.
India’s leading asset managers have established product research desks to help clients invest in global markets. Usually your asset manager or product manager will be happy to exchange notes.
A few signal words
Don’t worry if you are not fully up to date every day. As in the Indian markets, there is a lot of noise and most of the daily events will not affect the markets. As long as you keep in touch regularly, you will be able to gather a lot of information.
Don’t forget about asset allocation and diversification when taking positions in the US or elsewhere. Messages need to be filtered to synthesize your individual investment position, which means that you are using asset allocation and diversification as powerful tools to ensure that your portfolio is aligned with your long-term goals.
Lastly, beware of misinformation – everything you read is not true. If any news sounds very sensational, please double-check before making any investment decisions. Trust established sources and pay for subscription-based messaging services when needed. Also, look for strong political affiliations with posts that are a part of your daily reading and filter out those biases from your investment thesis.
(Himadri Chaterjee is a Senior Managing Partner at IIFL Wealth. Views expressed are the author’s own. Please consult your financial advisor before investing.)