The Weekly Stack 5th to 11th November

11 Nov, 20223 mins read
The Weekly Stack 5th to 11th November

Here are 3 interesting things that happened last week in finance.

📈 US Stock Market soared to best day in more than 2 years

⛵ Why boAt cancelled their IPO.

🪙 Bitcoin & Gold correlation hits the highest level in one year.

Read Time: 1.2 mins



Dow up 1,200 points on cooling inflation

Nasdaq composite packed what could be a year’s worth of gains into one day by roaring 7.4% higher. Wall Street blasted off Thursday to soar to its best day in more than two years as exhilaration swept through markets after a report showed inflation in the United States eased last month by even more than expected.

US Stock Market Key Points

  • The S&P 500 surged 5.5%.
  • Prices jumped for everything from metals to European stocks.
  • Bitcoin rose from its steep plunge from crypto industry's latest crisis of confidence.
  • In the bond market, Treasury yields tumbled sharply as investors pared bets for how aggressive the Federal Reserve will be in hiking interest rates to get inflation under control.

Stack’s Verdict: Although, the slight cooling in US inflation is welcome relief yet the possibility of a squeeze in the rate hike size is still a long way. But for now, stocks are surging and with the dollar taking a bow, gold prices gained momentum.

Why boAt cancelled IPO

Why boAt cancelled IPO
Why boAt cancelled IPO 

Second-lowest new Demat accounts added this year

About 1.77 million new dematerialised accounts were added in October — 28% below the previous nine-month average of 2.5 million. Broking industry officials said the fall in Demat account additions in October was on account of holidays due to the festive season and also due to a lack of initial public offerings (IPOs).

Fewer IPOs in 2022

As against over 60 companies that took the IPO route last year, only 16 companies have floated their initial public offers this year. Volatile market conditions and ‘strategic considerations’ are usually the reasons cited for not going public.

Why boAt cancelled their IPO

Imagine Marketing Ltd, boAt's parent company, has announced that the company would raise Rs 500 crore from its existing shareholder to fuel the expansion of its business and was postponing its initial public offering (IPO) plans.

Stack’s Verdict: The volatility in the secondary markets impacts the issuer Company’s confidence, not only about the IPO sailing through but also about the post-listing response. That said, a meaningful revival of the primary markets, though some time away, may be driven by stable secondary market conditions amid better Q2 FY23 results.

Bitcoin & Gold

Bitcoin & Gold 
Bitcoin & Gold 

Bitcoin behaves like gold

Bitcoin’s relationship with gold has historically been used as a way to measure how confident investors are in the asset as a store of value. The two were closely linked from June 2021 to February 2022, but the correlation turned negative in March.

Bitcoin-Gold Highest Correlation

At the beginning of October, the 30-day correlation between the two assets reached over 0.3, its highest in over a year, even as cryptocurrencies decoupled from equities. The 30-day correlation has ranged between positive and negative 0.2 since late last year.

Stack’s Verdict: Does any of this mean you should invest in Bitcoin like you would in gold? Not at all. There’s not enough historical data to tell if Bitcoin behaves like gold in the long run. Make sure you allocate less than 10% of your portfolio with cryptocurrency if you have a good enough investment corpus.

At Stack, we grow your wealth like it's ours. Invest like the top 1% with 👉 expert-built diversified portfolios

disclaimer: the information provided in this blog is for general informational purposes only. it should not be considered as personalised investment advice. each investor should do their due diligence before making any decision that may impact their financial situation and should have an investment strategy that reflects their risk profile and goals. the examples provided are for illustrative purposes. past performance does not guarantee future results. data shared from third parties is obtained from what are considered reliable sources; however, it cannot be guaranteed. any articles, daily news, analysis, and/or other information contained in the blog should not be relied upon for investment purposes. the content provided is neither an offer to sell nor purchase any security. opinions, news, research, analysis, prices, or other information contained on our blog services, or emailed to you, are provided as general market commentary. stack does not warrant that the information is accurate, reliable or complete. any third-party information provided does not reflect the views of stack. stack shall not be liable for any losses arising directly or indirectly from misuse of information. each decision as to whether a self-directed investment is appropriate or proper is an independent decision by the reader. all investing is subject to risk, including the possible loss of the money invested.

it’s time to grow your wealth

3 users1+ Lac investors are growing their wealth with Stack.
stack mb