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If you invested 1000$ on hang seng index in 1997 you will have $850 today


chandrabhai7

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1 hour ago, AreyOSamba said:

See. 10 companies antey you are able to hardly tell 4. Thats what I meant.. Long term antey yekkada padithey akkada investment kaadu. 

Long Term in an S&P 500 Index fund (because executive committee rebalance 4 times an year to make sure the right companies are in there) or total stock market index funds as it represents the entire market yield an average of 10% per year on an average.. and that 10% compounded over years will make you build wealth  .. As you know US market never yielded negative after SEC was founded 

2009 lo everyone said China is next big. Market Ikkada eeroju bane undochu repu reverse avtadi very soon 

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Another brutal selloff for China’s tech champions presents U.S. investors with a dangerous bargain. Shares like Alibaba BABA –1.31%  are deeply discounted compared with their U.S. counterparts. But “shares” might be the wrong word to describe them. Cryptostock, perhaps. Gains depend on a form of economic make-believe that’s becoming increasingly difficult to buy into. 

Two years ago, e-commerce giant Alibaba Group (BABA) was growing faster than Amazon.com AMZN +0.19%  (AMZN), with better profits, and half the stock market value. A tariff spat with the U.S. loomed, but what good value stock doesn’t come with a few warts? 

Since then, Alibaba’s American depositary receipts have plummeted by 80%. That includes a 12% drop on Monday amid a broader decline for Chinese shares with U.S. listings—a fund that tracks such shares, Invesco Golden Dragon China ETF PGJ +3.83%  (PGJ), lost 14%.

Business prospects played little role in the latest selloff. On Monday, China said that its economy grew at a 3.9% pace year-over-year during the third quarter, below its target, but above Wall Street’s expectation.

More concerning for U.S. investors was that China’s Xi Jinping, who broke precedent this past weekend by securing a third five-year term as head of the ruling Communist Party, stacked his core leadership group with loyalists. It’s a sign that China will continue to pursue social goals at the expense of market reforms and profits. 

Monday’s selloff represented investors “waking up to autocracy risk,” according to Perth Tolle, creator of the index behind the Freedom 100 Emerging Markets ETF FRDM +1.33%  (FRDM), which uses economic freedom scores in its stock selection. Emerging markets ETFs that weight companies by market value alone can have close to a 50% weighting across China, Hong Kong and Taiwan. 

Trade tensions between the U.S. and China have gone far beyond tariffs. Semiconductors are as vital as oil to modern economies, and the latest U.S. export ban covering chip-making machines could hobble China’s tech sector.

Meanwhile, on Monday, in a case involving a double agent working for the U.S., the Justice Department accused Beijing of bribery for competitive advantage.

Alibaba is down to just 15% of the stock market value of Amazon. Its earnings projections haven’t kept up with Amazon’s, in part because it lacks Amazon’s massive presence in cloud computing. And China’s economy looks wobbly. But the stock goes for a scant eight times earnings, suggesting that big challenges are priced in. 

The problem is that stocks are supposed to represent shared ownership in businesses, and come with a voting say in how things are run. There are good businesses that restrict the say to a few using super voting shares and other gimmicks. But China ADRs don’t represent ownership in the underlying businesses at all. They are shares in offshore companies that have contracts with companies in China, which allowed those companies to raise cash from U.S. investors without violating China’s rules against foreign ownership.

Effectively, whether those ADRs rise or fall from here—or have any long-term value—is in the hands of one man who shows little concern of late for rattling markets. That doesn’t make the ADRs worthless. But investors should think about them as holdings that can gain a lot or lose everything, for reasons that might be totally detached from cash flows or other economic realities.

In other words, they’re more like crypto than stocks, and lower prices don’t necessarily mean better deals.

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14 hours ago, Spartan said:

chinki galla meeda invest chesi , long term no antav. vallemanna mana Jagan anna la anukunnava .. leni company chupinchi 800cr public safety nvesting ki velladaniki

@chandrabhai7

 

Bro bric bric ani sava dobbaru 10 years back Malli chinki ani Teesestava. Valla growth rate was better than USA 

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36 minutes ago, chandrabhai7 said:

2009 lo everyone said China is next big. Market Ikkada eeroju bane undochu repu reverse avtadi very soon 

Reverse aithey world aagipotadhi babu. as simple as that. There will be no where to invest in- as that is the influence of S&P 500 companies not just within US but the entire world. Do you see people not using Apple, google, Meta, Amazon Microsoft, Coke, J&J, Exxon Mobil, Nvidia, Chevron, CP,  P&G, Visa, Master Card, Pepsi, Walmart McDonalds, Cisco, Intel, PM, UPS, ADP, AMEX products/ services?. These are just a few to name in top 30 companies.

Tell me 10 counties without these companies presence / products/ services man

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47 minutes ago, chandrabhai7 said:

2009 lo everyone said China is next big. Market Ikkada eeroju bane undochu repu reverse avtadi very soon 

Okka vishayam cheptha raasi pettuko. Chinese stocks lo invest cheyyadam waste. China govt controls everything. Ippudu jack maaa laa egiri padithey baba ki pattina gathi eppudaina pattochu.

edaina sector govt control nunchi bayatiki velthundi anipisthey immediate gaa restrictions peduthadi valla govt.

buying that country stocks for long term is as good as donating ur money.

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1 hour ago, AreyOSamba said:

Reverse aithey world aagipotadhi babu. as simple as that. There will be no where to invest in- as that is the influence of S&P 500 companies not just within US but the entire world. Do you see people not using Apple, google, Meta, Amazon Microsoft, Coke, J&J, Exxon Mobil, Nvidia, Chevron, CP,  P&G, Visa, Master Card, Pepsi, Walmart McDonalds, Cisco, Intel, PM, UPS, ADP, AMEX products/ services?. These are just a few to name in top 30 companies.

Tell me 10 counties without these companies presence / products/ services man

Companies need not go bankrupt for stock values to drop.

Ppl may think these valuations are not sustainable or governments are not facilitating growth and trim down their positions .

World doesnot stop if apple cuts into half with p/e from 20 to 10 ,same Applies to everything.

Companies may continue to report same growth but investors may not be happy with these valuations. 

Also Don't think these companies will be forever on top .

Look at the top 10 companies on s&p 500 from 1950s. They change every decade ..

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19 hours ago, Pandubabu said:

Companies need not go bankrupt for stock values to drop.

Ppl may think these valuations are not sustainable or governments are not facilitating growth and trim down their positions .

World doesnot stop if apple cuts into half with p/e from 20 to 10 ,same Applies to everything.

Companies may continue to report same growth but investors may not be happy with these valuations. 

Also Don't think these companies will be forever on top .

Look at the top 10 companies on s&p 500 from 1950s. They change every decade ..

Dude, I never said just by apple cutting into half stop the world.. But the S&P500 companies together cutting into half will end the world.

S&P500 companies change every quarter. All praise to Executive committee that continuously monitor these companies and change them regularly. They have a bunch of eligibility rules they apply. For example each company within S&P has to make profits for 3 consecutive quarters, they should be primarily listed in the US, they need maintain a certain market cap at a given point of time. They keep rewriting those rules. 

Forget about Apple alone.. what do you think about rest of the 502 stocks. Can you see a scenario where those 502 companies are red and a single index around the world shall see green? No, because companies are dependent so do markets

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3 hours ago, AreyOSamba said:

Dude, I never said just by apple cutting into half stop the world.. But the S&P500 companies together cutting into half will end the world.

S&P500 companies change every quarter. All praise to Executive committee that continuously monitor these companies and change them regularly. They have a bunch of eligibility rules they apply. For example each company within S&P has to make profits for 3 consecutive quarters, they should be primarily listed in the US, they need maintain a certain market cap at a given point of time. They keep rewriting those rules. 

Forget about Apple alone.. what do you think about rest of the 502 stocks. Can you see a scenario where those 502 companies are red and a single index around the world shall see green? No, because companies are dependent so do markets

Bro , stock price is just the value you are giving to the company.

Whatever you said about sp500 committee is true ,

That does not mean companies loosing market cap will end world .

2007-2009 witnessed a 46 percent drop, that did not end the world .

Yes if  500 index is red , other indexes will be green , not all indexes have sp500 stocks ..

Stock price  is simply the value investor willing to pay  for portion of the company . If he feels , US market is overrated and driving on low interest rates and interest rates are gonna be up for considerable amount of time , they won't pay as much as they are paying now.

Stock markets don't end world . Nuclear wars , hunger end the world .

 

 

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1 hour ago, Pandubabu said:

Bro , stock price is just the value you are giving to the company.

Whatever you said about sp500 committee is true ,

That does not mean companies loosing market cap will end world .

2007-2009 witnessed a 46 percent drop, that did not end the world .

Yes if  500 index is red , other indexes will be green , not all indexes have sp500 stocks ..

Stock price  is simply the value investor willing to pay  for portion of the company . If he feels , US market is overrated and driving on low interest rates and interest rates are gonna be up for considerable amount of time , they won't pay as much as they are paying now.

Stock markets don't end world . Nuclear wars , hunger end the world .

 

 

End of the world kadu vayya. You are not getting the context. End of the world for investing.  There will not be a better place to invest at that moment antunna. 

You tell me one index that is Green while the S&P 500 lost its value in any given 3-5 year period. Infact I am only asking this in a 3-5 year period not even a longer term.. 
PS the whole discussion is about @chandrabhai7 telling 

Inko sari long term trading ante 

Just to show examples on what a better long term investment would look like ani

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1 hour ago, AreyOSamba said:

End of the world kadu vayya. You are not getting the context. End of the world for investing.  There will not be a better place to invest at that moment antunna. 

You tell me one index that is Green while the S&P 500 lost its value in any given 3-5 year period. Infact I am only asking this in a 3-5 year period not even a longer term.. 
PS the whole discussion is about @chandrabhai7 telling 

Inko sari long term trading ante 

Just to show examples on what a better long term investment would look like ani

Vaakay.. but index ante sp500 index okate kadhu . Bochadu index lu hai over the world with no weightage to sp500 stocks ...

Technically they can be green if sp500 is red, but will they be anedhi different question...

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4 hours ago, Pandubabu said:

Vaakay.. but index ante sp500 index okate kadhu . Bochadu index lu hai over the world with no weightage to sp500 stocks ...

Technically they can be green if sp500 is red, but will they be anedhi different question...

Adey ra babu. Although there are so many indices there is no index that yielded as constantly as S&P500 long term. There is data to backup this. Plus, Warren Buffet himself said, if I don’t have to cherry pick stocks I would rather buy S&P 500 index funds and forget about it forever ani.. such as the belief in it. 
 

Entha sodhi matladina, everyone knows how good US stock market is over a long term vayya. No one’s know if Chinese numbers are exactly true. Only lottery ticket guys will talk abt non sense indexes vayya 

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6 hours ago, AreyOSamba said:

End of the world kadu vayya. You are not getting the context. End of the world for investing.  There will not be a better place to invest at that moment antunna. 

You tell me one index that is Green while the S&P 500 lost its value in any given 3-5 year period. Infact I am only asking this in a 3-5 year period not even a longer term.. 
PS the whole discussion is about @chandrabhai7 telling 

Inko sari long term trading ante 

Just to show examples on what a better long term investment would look like ani

BSE index is green...jai modi

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1 hour ago, AreyOSamba said:

Adey ra babu. Although there are so many indices there is no index that yielded as constantly as S&P500 long term. There is data to backup this. Plus, Warren Buffet himself said, if I don’t have to cherry pick stocks I would rather buy S&P 500 index funds and forget about it forever ani.. such as the belief in it. 
 

Entha sodhi matladina, everyone knows how good US stock market is over a long term vayya. No one’s know if Chinese numbers are exactly true. Only lottery ticket guys will talk abt non sense indexes vayya 

Evaru kadhannaru va US market strong kadhani .. point vadhilesi edho statement chepthav andhariki thelisindhi..

Chill maar. All good 

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