Semi conductor index is often considered a leading indicator of health of the economy

Micron: 'we see upcoming significant sequential declines in revenue & margins'

Nvidia: 'Will slow down hiring & control expenses as the company deals with a challenging macro environment'

Amid the ongoing war, you would have heard Nickel rising by over 200%, Wheat by 80% and Oil by 50%

But did you know there is another asset class that rose by over 2000% since Dec

Todays thread is about Credit Default Swaps, an asset class only accessible to the ultra rich 🧵👇

This thread is divided into the following parts

1. Basics & History of Credit Default Swaps
2. How Russian CDS rose over 2000%?
3. Why these instruments are limited to the ultra wealthy?
4. Can you profit indirectly from CDS?

Credit Default Swaps belong to a category of derivative products called Swaps.

Derivative products are usually of two kinds

1. Standardized Derivative Products like Futures and Option Contracts that are traded over the exchange

2. Non Standardized Over the Counter Products like Forwards and Swaps

Swap at its simplest is an agreement between two parties to exchange a series of cash flows for a set period of time

Swaps were basically invented to help large banks and companies manage their interest rate and currency exposures

You obviously haven't read my blog https://t.co/g2Ydiz1iU4
or even bothered to read the last couple to tweets on my profile.

If you had, you would know I am bullish on this theme for more than a year now.

At least make the effort to know someone before passing comments.

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. How I achieved financial independence before my 28th Birthday?
2. How a janitor become a millionaire?
3. How even you can live a financially healthy life by following a few concepts?

Lets dive right in.

This year before my 28th Birthday.

My Net Worth surpassed my Lifetime Earnings and I achieved my goal of becoming Financially Independent.

Financial Independence = When you do not have to work to earn for a living, you work cause you like to on whatever that makes you happy.

Talking about money is hard and uncomfortable and writing this thread, even I do feel a tad bit uncomfortable and exposed but its a conversation we need to have, cause its an Important one.

So many of us are treating and using money the wrong way cause we aren't taught about this very important life skill called Personal Finance either in school or college.

Somehow the world expects us to just figure it out as we transition to our adult lives.

I do not come from a wealthy family.
I grew up in a small town in India and did see plenty of financial hardship growing up.

Today, when I look back at those times, I feel glad that I went through that, cause it taught me the importance of Money at a very young age.

#BankNifty breaks importance resistance of 34800
Expect Banks to do well in June, similar to recent rallies in global banking names (Citi, JPM, Wells Fargo etc)

Possible targets

Perspective.

#Syngene released its Annual Report today
What a treat to read!

Multiple earnings triggers 2024 onwards

Link to Annual Report ⤵️

D: Hold in Family PF

https://t.co/E9L3zSWIGP

Stock has been consolidating between 700 and 520 sine Sep 2020

Didn't break the lower end of 520 even in this recent correction!

It's the weekend!
Grab a cup of coffee, in this thread I will explain

1. What are ETFs?
2. How are they different from Mutual Funds?
3. What are factors to consider while investing in ETFs?

Lets dive right in.

ETFs stand for Exchange Traded Funds

The easiest way to understand them is to think of them as Mutual Funds that are traded on the exchange just like stocks.

(technically, ETFs are nothing like Mutual Funds)

ETFs are structured as pools of investment that are inclined to

a. lower the fees associated with investment
b. shift the bulk load of fees to frequent traders of the ETF than holders
c. allow investors to invest in diverse set of securities / asset classes easily

ETFs originated after the stock market crash of 1987 in US

'Passive Investing' was the new shiny thing and investors wanted a low cost way to invest in the index without any manager actively managing their investments

Enter Nate Most

Nate Most is known as the father of ETFs
A physicist by training, Nate got the idea of ETF from warehouse receipts

@vrael5 @jitenkparmar No, they have a agreement with Tesla and it's the private company of Panasonic that makes these batteries

CATL is a good bet in this space

Battery industry has many similarities of semi conductor industry

High cost of entry
Limited players
Protected Tech
Need Scale to Survive

India needs to build its own battery & not just assemble parts imported from China and Korea

There are some very promising start ups in India trying to extend the life of a lithium ion battery but none that are doing research in Solid State

$QS is my bet on solid state future