EQ Saturday Sapience #51

Equity Intelligence 27th January 2024

India recently ascended to become the world's fourth-largest stock market, surpassing Hong Kong in market capitalization on January 23. The sustainability of this growth is a topic of interest. Artificial intelligence (AI) shows great potential in boosting human capital and growth, especially in the emerging world. Meanwhile, in the energy sector, natural gas is increasingly seen as a versatile alternative, capable of stabilizing energy prices. Its usage aligns with the idea that all hydrocarbons will eventually converge in value, trading at similar prices in the long term.

  • India is climbing up global stock market ranks. Will this sustain?... India overtook Hong Kong to become the world’s fourth-largest stock market by market capitalisation on January 23... Read more
  • AI holds tantalising promise for the emerging world. It could help boost human capital, and ultimately growth… Read more
  • Compressed for Time… In a pinch, virtually everything could be run on natural gas…  Given the highly inelastic nature of energy commodities, it would not take much in the way of direct substitution to rein in runaway energy prices should those that adhere to the peak cheap oil hypothesis prove correct. In the long run, every hydrocarbon will be oil, and all will trade for roughly the same price… Read more
  • “Information generally follows the well-known 80/20 rule: the first 80 percent of the available information is gathered in the first 20 percent of the time spent. The value of in-depth fundamental analysis is subject to diminishing marginal returns. Most investors strive fruitlessly for certainty and precision, avoiding situations in which information is difficult to obtain. Yet high uncertainty is frequently accompanied by low prices. By the time the uncertainty is resolved, prices are likely to have risen.” — Seth Klarman