In today’s briefing:
- Alpha Generation Through Share Buybacks in Korea: May 2023
- India: Net Exports and Investment to Ensure 7%+ RGDP Growth as PSBR Moderates
- US 10-Year | Jun 2, 2023
- Bubble or Breadth: Evaluating the State of the Stock Market
Alpha Generation Through Share Buybacks in Korea: May 2023
- In this insight, we discuss the alpha generation through companies that announced share buybacks in Korea in May 2023.
- We provide a list of 25 stocks in the Korean stock market that have announced share buyback programs in May 2023.
- The top five market cap stocks that have announced share repurchases include Hyundai Elevator, DGB Financial, Com2Us, Miwon Commercial, and Jeisys Medical.
India: Net Exports and Investment to Ensure 7%+ RGDP Growth as PSBR Moderates
- RGDP grew 7.2% in FY2023 driven by 10.4% growth in GFCF and 7.5% growth in PCE. Improved terms of trade will boost net exports, ensuring 7.2% growth in FY2024 too.
- Services (over half of GDP) have averaged 8% annual real growth for the past 25 years (8.7% excluding the covid year), underpinning growth. Manufacturing set to gain from relocating supply-chains.
- With tax (personal, corporate and GST) revenues growing in double-digits YoY, the fiscal deficit (and PSBR) are undershooting official estimates, helping to crowd-in stronger investment spending.
US 10-Year | Jun 2, 2023
- The five-year and ten-year yields have reached significant turning points, correcting their previous overbought positions.
- This shift in sentiment has led to a bullish trend in bonds, which are now considered oversold.
- The recent Chicago PMI inflation numbers have further contributed to this bond rally.
Bubble or Breadth: Evaluating the State of the Stock Market
- History shows that stock market bubbles – a 100% price boom within a year, followed by a 50%+ crash in the following year – are extremely rare.
- We apply this metric to current market dynamics and conclude there are no booms around these days.
- When expanding the definition of a bubble, two of them appear but only in a small subset of the total stock market: Non-profitable Tech stocks and NVIDIA.
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