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As Indian equity markets grapple with stiff valuations, investors are increasingly exploring international opportunities, particularly in the United States.

Wall Street’s recent strong performance, led by technology stocks, has made US equity mutual funds a viable diversification strategy.

According to a report by The Economic Times, financial planners are recommending investors to allocate 5-10% of their equity portfolios to US markets, staggering investments over the next year to mitigate risks from the sharp run-up in valuations.

Indian vs US equities: a valuation snapshot

At present, the S&P 500 trades at a price-to-earnings (PE) ratio of 25.41, slightly lower than the Nifty 500’s 26.5.

Vishal Dhawan, founder of Plan Ahead Wealth Advisors, notes in the report,

At the broad index level, valuations of Indian and US equities are similar. Several US companies are expected to show strong growth.

Dhawan advocates systematic investment plans (SIPs) in funds like Franklin US Opportunities Fund for those with a higher risk tolerance.

Some diversified and sectoral equity mutual fund schemes have a provision to allocate up to 35% to overseas equities.

Schemes like PPFAS Flexicap Fund have a mandate to invest in global companies.

Indian and US markets together exposes an investor to 30% of global GDP

The US accounts for approximately 25% of global GDP and hosts unique businesses in emerging sectors, making it an attractive destination for Indian investors.

A note from Motilal Oswal Mutual Fund highlights that combining investments in the US and Indian markets provides exposure to 30% of global GDP.

Additionally, the low correlation between US and Indian markets helps reduce portfolio volatility, enhancing risk-adjusted returns.

Over the past year, the S&P 500 surged 37%, outpacing the Nifty 500’s 25.29% gain.

“The US markets are up sharply, led by technology stocks in the last one year, but the move ahead is not going to be one-sided,” said Vineet Nanda, founder, SIFT capital.

Nanda believes investors could stagger investments and use a buy on dips approach.

However, wealth managers caution against over-allocating to the US.

Feroze Azeez, deputy CEO of Anand Rathi Wealth, warns, “The US market faces geopolitical risks, inflationary pressures, and Federal Reserve policy uncertainties.”

Investors should maintain a strong domestic equity position while considering small allocations to US equities.

Regulations limit options for US equity investments

Despite the appeal, Indian investors face limited options for US equity investments, distributors say.

This is because the Reserve Bank of India (RBI) enforces a cap of $7 billion for mutual funds and an additional $1 billion for exchange-traded funds (ETFs).

This restriction limits the availability of funds focusing on mid- and small-cap US stocks or sectors outside technology.

Many fund houses have halted new investments due to these limits.

For those keen on US exposure, options include large-cap-focused funds or Nasdaq 100 ETFs, which are heavily weighted towards technology.

Furthermore, international funds enjoy favourable tax treatment, with a long-term capital gains tax of 12.5% after a two-year holding period.

The post Are you an Indian investor looking to play the Wall Street rally? Here’s how to do it appeared first on Invezz

The stock market’s recent retreat has left traders on edge, even as the S&P 500 remains close to its record highs.

Despite a two-day pullback of just 0.9%, Wall Street’s fear gauge, the CBOE VIX index, has risen by 11%, signalling that some market participants are wary of a deeper correction.

Momentum stocks, which had driven the market’s rally in recent months, showed signs of faltering this week.

The reversal in popular plays on Monday, followed by a decline in the S&P 500 on Tuesday, has raised concerns that market strength may be running out of steam.

However, the broader picture remains relatively optimistic. The S&P 500 is still up 26.5% year-to-date and sits just under 1% from its record high.

For many investors, the rally can be attributed to the so-called “Trump trade” — a bet on stocks expected to benefit from President-elect Donald Trump’s policies.

This trend has supported key sectors like technology and defence, especially as the election result signalled a continuation of pro-business policies.

Cathie Wood’s ARK funds rally on Trump’s re-election

Cathie Wood, known for her ARK Innovation ETF (ARKK), has seen a resurgence since Trump’s re-election.

The ARKK, which famously invested in high-growth tech stocks like Tesla, Roku, and Twilio, dropped dramatically in mid-2021 but has regained momentum, jumping 27.6% since Trump’s victory.

Tesla’s resurgence has been a major driver of ARKK’s performance, considering it comprises 10% of the fund.

However, another ARK fund, the Next Generation Internet ETF (ARKW), has outperformed ARKK.

With a 29.5% increase since the election, ARKW has more significant exposure to sectors benefiting from Trump’s policies, such as crypto and defence.

The fund’s 11.5% weighting in the ARK 21Shares Bitcoin ETF has added substantial value following the recent rally in Bitcoin prices, signalling the growing interest in cryptocurrency under a pro-business, crypto-friendly administration.

ARKW: A stronger proxy for Trump 2.0

While ARKK has captured most of the attention, analysts like Todd Sohn, ETF and technical strategist at Strategas Securities, argue that ARKW is a stronger bet for those looking to capitalize on Trump’s second term.

With its 10% Tesla weighting, alongside stakes in Palantir Technologies and Bitcoin, ARKW stands out as a more direct proxy for the so-called “Trump 2.0” trade.

Palantir’s rise, driven partly by hopes for increased government defence contracts, further strengthens ARKW’s appeal.

The fund also includes exposure to cryptocurrency-related stocks like Coinbase and Robinhood, which are seen as benefiting from Trump’s crypto-supportive stance.

The outlook for ARK ETFs and the broader market

Despite the recent rally, some ARK funds, especially ARKK, have seen outflows.

There are over 2,600 equity ETFs on the market, and Sohn points out that strong past performance doesn’t guarantee continued success.

However, for those bullish on Trump’s policies and their market impact, ARKW remains a compelling option, given its exposure to key growth sectors like crypto, Tesla, and defence.

For now, despite the brief market retreat, the underlying bullish trend fueled by the Trump trade and favorable policies continues to propel certain ETFs to new highs.

The post Trump 2.0 could boost this Cathie Wood fund—Hint: it’s not ARKK appeared first on Invezz

Ukraine’s economy has been going through one of the most challenging periods in modern European history. 

Nearly three years into Russia’s invasion, the country is still facing an uphill battle to rebuild its economy once the war ends. 

Ukraine’s economy has managed to survive and adapt.

However, labor shortages, fiscal strain, and a fragile energy sector are still obstacles that have to be surpassed.

It’s still uncertain when the war will end, and most importantly, what will Ukraine’s economy look like afterwards.

A history of economic resilience

The war’s onset in February 2022 triggered an economic freefall.

Ukraine’s GDP contracted by 29.1% in 2022, one of the sharpest declines in Europe’s history, driven by disrupted supply chains, lost territories, and destroyed infrastructure. 

But 2023 surprised many analysts as GDP rebounded with 5.3% growth, propelled by international aid, private sector adaptability, and efforts to restore critical infrastructure.

Growth has slowed in 2024, with projections of 4% GDP growth fueled by defense spending, agricultural exports, and a recovering metallurgical industry.

The OECD projects further deceleration, with growth moderating to 2.5% in 2025 and 2% in 2026, assuming the war continues.

Labor shortages and logistical disruptions are some of the country’s biggest challenges.

Businesses have relocated to western Ukraine, and some sectors, like IT, have flourished.

However, structural damage to industries like agriculture and steel has left lasting scars.

The winners and losers of Ukraine’s economy

Agriculture has suffered from destroyed farmlands, Black Sea port blockades, and disrupted exports.

Grain shipments dropped by 50% in 2022, though alternative land routes have supported some recovery.

Between January and July 2024, agriculture accounted for 63.1% of exports, with a modest 7.6% year-on-year growth in US dollar terms.

Despite these gains, the sector faces high shipping costs and international trade barriers.

Ukraine’s steel industry contracted by over 80% in 2022 as key facilities were occupied.

A modest 8% growth was recorded in 2023, but energy shortages and infrastructure damage continue to slow recovery. 

Ukraine’s IT sector has been a winner, generating $7.3 billion in export revenues in 2023.

Digital-first initiatives, such as the government’s Diia platform, have streamlined services and attracted international investment.

The sector has become a critical economic pillar, demonstrating adaptability through remote operations and relocation.

Energy remains a significant vulnerability.

Russian missile strikes have caused widespread power outages, leaving urban centers particularly exposed.

While Ukraine has sought renewable energy solutions and received international support to repair power plants, the International Energy Agency (IEA) warns that this winter will test the country’s fragile grid.

Fitch affirms a bleak outlook

On December 6, Fitch reaffirmed Ukraine’s foreign currency credit rating at ‘RD’ (Restricted Default) and its local currency rating at ‘CCC+’. 

The reasoning behind this rating is the ongoing debt restructuring and heightened fiscal pressures from the war. 

Despite the government’s controversial wartime tax hikes, including raising the personal income tax from 1.5% to 5%, Fitch projects budget deficits to remain high—around 20% of GDP in 2024 and 2025—as defense spending continues to dominate expenditures.

These deficits are partially offset by foreign aid and domestic borrowing.

The International Monetary Fund (IMF) has disbursed $9.8 billion under its current program, with another $1.1 billion approved in late 2024. 

Yet, Fitch warns that declining foreign grants and uncertainties surrounding US aid under President-elect Donald Trump could destabilize public finances further.

Labor shortages and economic participation

Male mobilization for military service has left many businesses understaffed.

Companies have been reporting difficulties planning for exports due to an uncertain workforce. 

Women have stepped into roles traditionally held by men, becoming the majority workforce in sectors like healthcare, agriculture, and education.

Female entrepreneurs have also launched small-scale businesses, supported by microloan programs and international initiatives.

The long-term impact of labor shortages on productivity and economic recovery remains a concern for Ukraine’s outlook.

The role of foreign aid

International aid has been the backbone of Ukraine’s wartime economy. Western allies, led by the United States and the European Union, have provided over $300 billion in aid since 2022.

Beyond military assistance, funds like the $2 billion IFC Economic Resilience Action program and the G7’s $50 billion loan have targeted agriculture, finance, and telecommunications.

However, the future of US aid under President-elect Trump is uncertain. European partners and international financial institutions may need to step up if US support wanes.

The G7’s commitment to using interest from frozen Russian assets to back loans signals a long-term focus on Ukraine’s recovery.

Reconstruction: a $500 billion question

Rebuilding Ukraine will require an estimated $500 billion over the next decade. Infrastructure, renewable energy, and IT are key priorities.

Roads, bridges, and housing in conflict-affected areas need urgent repairs. 

Expanding renewable energy could reduce dependence on fossil fuels and improve energy resilience.

Building on the success of the IT sector could position Ukraine as a leader in digital innovation.

Deeper integration with the European Union could unlock new opportunities for trade and investment.

Recent EU accession talks signal progress toward aligning Ukraine’s economy with European standards, paving the way for institutional modernization.

Rebuilding Ukraine is not just about restoring what was lost—it’s an opportunity to reimagine the country as a modern, dynamic, and inclusive economy integrated into Europe’s future.

The post The road to recovery: how Ukraine plans to rebuild its economy appeared first on Invezz

The IAG share price has been in a strong trajectory this year, moving to its highest level since March 2020. Most recently, the stock has risen in the last six consecutive weeks, making it one of the best-performing companies in London. It has risen by over 220% from its lowest point in 2022. 

IAG business is booming

IAG, the parent company of firms like British Airways, Iberia, LEVEL, and Aer Lingus, is doing well this year. It has become the second-best-performing company in the aviation industry after United Airlines. 

This growth mirrors that of other airlines. United Air Lines stock has jumped by over 150% this year, while Qantas and Delta Air Lines are up by double digits this year.

The stock surged after its business continued to fire on all cylinders as evidenced by the rising load factor. 

IAG’s business is doing well. The most recent financial results showed that its revenue rose to €24 billion in the first nine months of the year. That was big increase from the €22.2 billion a year earlier.

IAG’s profit after tax continued doing well, rising to €2.3 billion, while its basic earnings per share rose to 47.6 cents. These numbers meant that the company was seeing elevated demand across all its divisions, a trend that will continue.

IAG’s main advantage is that its top airlines have a good market share in key markets. For example, British Airways continues doing well in the transatlantic route, which is one of the most profitable. The North Atlantic route accounted for about 31.7% of the total ASK, followed by Europe and Latin America.

Read more: Here’s why the IAG share price just popped

IAG is now paying dividends

The return to profitability has pushed IAG to restart paying dividends. It paid an interim dividend of about €0.03 on September 9, and the management expects to continue making these payments in the future. Also, it has started repurchasing shares, with an ongoing €350 million plan.

IAG has also worked to improve its balance sheet. It ended the last quarter with over €16 billion in borrowings and €9.8 billion in cash and cash equivalents. It had €6.8 billion in cash and €16 billion in borrowings a year earlier.

IAG share price has also benefited from the relatively stable fuel prices. According to IATA, the average jet fuel price stands at $239, down by 22% from a year earlier. The cheapest prices are in North America, followed by Europe Asia, and Oceania. 

However, the company has also faced some challenges. For example, the company will continue paying higher salaries, following a negotiated deal in 2023. The deal called for a 13% wage increase in a 18% month period. 

IAG share price analysis

IAG chart by TradingView

Turning to the weekly chart, we see that the IAG stock price has done well in the past few months. It has recently crossed the important resistance at 220p, the highest swing in March 2021. 

The stock has moved above the 50% Fibonacci Retracement level and formed a golden cross pattern. This pattern forms when the 50-week and 200-week Exponential Moving Averages (EMA) cross each other. 

The MACD and the Relative Strength Index (RSI) show that the stock has momentum as the latter has moved to the overbought level.

Therefore, the stock will likely continue rising as bulls target the next key level at 310p, the 61.8% retracement point. In the long term, the stock may jump to 450p. A drop below the key support at 200p will invalidate the bullish view. 

The post IAG share price is firing on all cylinders: any more upside? appeared first on Invezz

Delta Air Lines stock price has done well this year, and is hovering near its all-time high of $67.45 as the aviation industry continues to recover. It has risen by over 57% this year, outperforming the S&P 500 and Nasdaq 100 indices that have jumped by less than 30%.

Why Delta Air Lines stock is soaring

Delta Air Lines shares are soaring, in sync with what is happening in the aviation sector. In Europe, IAG is one of the best-performing stocks as it soared by over 106% this year. 

Similarly, in Australia, the Qantas share price has soared to a record high this year as demand rose and as the company boosted its reputation among customers and investors. 

In the US, United Airlines stock has soared by over 150% this year, while American Airlines has risen by 94% from the lowest point this year. The closely-watched US Global Jets ETF (JETS) has risen to $26, up by 57% from its lowest point this year. 

Delta Air Lines, the biggest company in the industry, is the envy of all companies because of its size and profitability. 

Its net profit margin stands at 7.7%, while United Air Lines and American Air Lines have margins of 4.9% and 0.51%, respectively. Ryanair, the biggest company in the United States, is the only other major airline with better margins. 

Its margins are higher because of investments in premium travel, which is doing well. Indeed, the management expects that its premium ticket revenue will exceed main cabin sales by 2027

Delta Air Lines has a strong market share in the United States, where it commands a 17% market share. It is followed by other companies like Southwest, American, United, Alaska, and JetBlue. 

The company’s top competitive advantage is that it has bases across the country and that SkyMiles, its loyalty program has become a major part in its business. It has over 120 million customers. Data shows that the value of the miles earned stood at over $3.4 billion. 

DAL business is doing well

The most recent financial results showed that its business was doing well as its revenue growth continued. Its operating revenue rose to $15.7 billion, while its operating income rose to $1.4 billion. 

Delta Air Lines had a pre-tax income of $1.6 billion and an operating cash flow of over $1.3 billion. 

Analysts are hopeful that Delta Air Lines will continue doing well this year. The average revenue estimate is that it will make over $14.6 billion this quarter, bringing the annual figure to $60.7 billion. It will then make $61.6 billion next year.

The biggest challenge that Delta is facing is that airfares are not growing this year because of the waning demand. Also, it is facing challenges related to Boeing, the giant airline manufacturer. Delta Air Lines is also seeing intense competition from United Air Lines, whose turnaround is accelerating. 

Read more: Delta Air Lines is in the ‘best fundamental shape it has ever been in’

Delta Air Lines stock price analysis

The daily chart shows that the DAL stock price has done well this year. It remains above the 50-day and 100-day Exponential Moving Averages (EMA). Also, the company has formed a bullish flag pattern, a popular continuation sign. 

This pattern is made up of a long vertical line and a rectangle pattern. In most periods, this pattern results in a bullish continuation.

Therefore, the stock will likely continue rising, with the next point to watch being at $70, which is about 10% above the current level. A drop below the lower side of the flag at $62 will invalidate the bullish view.

The post Is the Delta Air Lines stock a buy near its all-time high? appeared first on Invezz

Zip share price has done well this year, rising by over 365%, and making it one of the best-performing companies in Australia. It has soared by over 1,050% from its lowest level in 2023, pushing its market cap to over A$3.8 billion.

Why ZIP share price has soared

Zip is a leading technology company that has gained substantial market share in Australia, New Zealand, and the United States.

It is a leading player in the Buy Now Pay Later (BNPL) industry, where it lets customers buy for products and services and pay for them in equal installments.

Like Affirm, the company does not charge interest for some of its loans, and instead, it makes money from the commission it charges the merchants. It charges loans in some of its other services like Pay in 8.

The company’s stock has done well because of the ongoing improvements in the industry. For example, in the United States, Affirm stock has jumped by about 700% from its 2023 lows.

Similarly, in Europe, Klarna has started the Initial Public Offering (IPO) process in the United States. Just this week, it added companies like Bank of America, Barclays, Deutsche Bank, and Citi to be the joint bookrunners. Analysts expect that the company may receive a $20 billion valuation, much higher than its pandemic valuation.

Zip share price has also done well after the company’s business continued well in the United States.

The most recent financial results showed that Zip’s revenue rose to $868 million from $677 million a year earlier. This revenue came as the total transacting volume jumped by 14% to over A$10 billion.

The growth has continued in the first quarter of the 2025 financial year. The TTV rose by 22% during the quarter to $2.8 billion, while its revenue rose by 18.8% to $239 million. 

ZIP has continued to add more customers in the three countries where it operates. Its active customers rose to 6.08 million, while the number of merchants rose to 80k. Firms like Cathay Pacific and GameStop were some of the most recent customer additions.

Therefore, the Zip share price has done well because of its continued growth of its business in the United States. While its market share there is small, the management hopes that it will continue to grow over time.

Most importantly, the company has reported record profitability. In the last financial year, its group EBITDA rose to over $78 million. This is notable since Affirm has struggled to become profitable.

Zip share price forecast

The daily chart shows that the ZIP stock price may be at risk of a harsh reversal in the next few months. First, it has formed a double-top chart pattern at $3.54. In most periods, a double-top is a popular bearish sign in the market. It has already dropped below the neckline at $3.06.

Second, the stock has formed a rising broadening wedge chart pattern. This pattern is made up of two rising and diverging trendlines. It usually leads to a strong bearish breakout over time. Also, it has moved below the 50-day Exponential Moving Average (EMA).

Therefore, after having a spectacular performance this year, there is a risk that it will have a strong bearish breakout in the coming days. If this happens, the next point to watch will be at $2.0, which is about 31% below the current level.

More Zip stock price gains will be confirmed if the stock rises above the double-top point at $3.54.

The post Up 365% in 2024, what next for the Zip share price? appeared first on Invezz

The HSBC share price is firing on all cylinders and is hovering at its all-time high as the company’s turnaround measures continue. It has risen in the last five consecutive weeks and moved to a record high of 755p. 

HSBC turnaround continues

HSBC, the biggest European bank, has been in a prolonged turnaround approach as the management aims to boost profitability and boost efficiency. 

The most important measures in this period has been its decision to exit key markets that were less profitable. Its goal has been to solidify its presence in Asia and in Europe. 

It exited the US market by selling its business to Citizen Bank. It did that by selling 90 branches and retaining the rest in a bid to target wealthy clients. 

The company then sold its Canadian business to RBC and its French business to Credit  Commercial de France. Most recently, the company exited its South African and Argentinian businesses. It also sold its German private banking business to BNP Paribas. There are rising odds that it will continue exiting other countries.

At the same time, the company has made several acquisitions to boost its market share in the remaining locations. For example, it recently acquired Citigroup’s Chinese retail wealth business. It also bought UK’s branch of Silicon Valley Bank as the company collapsed. 

The management has done more actions to boost its efficiency. It recently announced a strategic decision to comhine its commercial and investment banking divisions as part of Georges Elhedery’s push to eliminate overlapping roles and lower expenses.

In a report on Thursday, Bloomberg said that it is aiming to cut at least $3 billion in costs during the ongoing restructuring. These huge sums represent about 10% of its operating expenses

Read more: HSBC share price yields 7% and has numerous catalysts ahead

Results are paying off

HSBC’s actions come at a difficult time for the company. For one, China, a country it is seeking to gain market share in, is slowing and struggling to hit its 5% growth target. As a result, officials have unveiled a $1.4 trillion stimulus package aimed at stabilizing local administrations.

The reality, however, is that China’s key sectors like in real estate and the stock market are struggling, which is affecting its potential wealthy clients. It was also forced to book losses as customers default.

The most recent financial results showed that its profit before tax rose to $8.5 billion in the third quarter, a $0.8 billion rise. This growth was mostly because of its weath and personal banking division. Profit after tax rose to $6.7 billion and the company announced a $3 billion buyback.

HSBC’s revenue rose by 5% to $17 billion, even as the net interest income (NII) dropped by $1.6 billion. NII will likely continue falling as interest rates in key countries drop.

HSBC share price analysis

HSBC chart by TradingView

The weekly chart shows that the HSBC stock price has been in a strong uptrend in the past few years. It rose from the pandemic low of 220p to 755p today. This rally has mirrored that of other top European banks like Unicredit and UBS.

HSBC has formed an ascending channel, and is now a few points below its upper side. Also, it has remained above the 50-week and 25-week Exponential Moving Averages, while oscillators like the Relative Strength Index (RSI) and the MACD have continued rising.

Therefore, using trend-following principles, the path of the least resistance for the stock is bullish. The next point to watch will be at 800p, which is the upper side of the ascending channel. The alternative scenario is where it retreats and retests the lower side of the rising channel. 

The post HSBC share price is soaring: technicals point to more gains appeared first on Invezz

Lloyds share price has had a good performance this year, mirroring the performance of other large European banks. It has risen by over 20% this year, beating the FTSE 100 index, which has risen by almost 8%.

Why Lloyds share price rallied

Lloyds Bank is the biggest mortgage lender in the United Kingdom. In addition to its eponymous brand, it owns companies like Halifax, Bank of Scotland, Scottish Widows, MBNA, Schroders Personal Wealth, Lex Autolease, and Blackhorse. It serves over 25 million customers in the UK.

LLoyds Bank – together with Tesco – is seen as a proxy for the British economy because it does not have a big presence outside the country. Therefore, its stock has done well because the UK economy has been more resilient than expected. 

The company has also continued to report strong financial results, helped by higher interest rates. Like other central banks, the Bank of England (BoE) hiked interest rates to deal with the elevated inflation. 

Banks like Lloyds typically benefit when interest rates are high because they lead to higher net interest margins. Recently, however, there are signs that the impact of higher rates is fading.

The most recent financial results showed that its net interest income came in at £9.6 billion, down by 8% from the same period last year. This decline was offset by a 9% increase in other income like fees. 

The company affirmed that its business will do well this year. It expects that its net interest margin will be over 290 basis points and that its return on tangible equity (RoTE) was about 13%. 

Lloyds Bank has also boosted its payouts to investors. It has room to do that because of is higher CET1 ratio of 14.6%. It hopes that the CET1 ratio will drop to about 13% in the near term. The bank has a dividend yield of about 5.32%, higher than the FTSE 100 return of 3.58%.

The next important catalyst for the Lloyds share price will be next week’s Bank of England (BoE) decision. Most analysts expect that the bank will cut rates by 0.25%, its third month of cuts. It will then hint that it will deliver more cuts in 2025.

Ideally, Lloyds stock price should underperform when the BoE cuts rates. However, the cuts seems priced in, and the impact of higher rates has started to fade in the past few quarters. 

Lloyds share price analysis

The daily chart shows that the LLOY stock price has been in a strong downward trend in the past few months. It has dropped below the 23.6% Fibonacci Retracement level at 56.70p.

The stock has also moved below the 50-day and 100-day Exponential Moving Averages (EMA). 

Fortunately, it has found some support at the 38.2% retracement point at 52.62p. Therefore, a drop below that level will confirm the bearish trend and open the possibility of the stock falling to the 50% retracement point at 49p. 

The post Lloyds share price outlook ahead of the BoE rates decision appeared first on Invezz

As Indian equity markets grapple with stiff valuations, investors are increasingly exploring international opportunities, particularly in the United States.

Wall Street’s recent strong performance, led by technology stocks, has made US equity mutual funds a viable diversification strategy.

According to a report by The Economic Times, financial planners are recommending investors to allocate 5-10% of their equity portfolios to US markets, staggering investments over the next year to mitigate risks from the sharp run-up in valuations.

Indian vs US equities: a valuation snapshot

At present, the S&P 500 trades at a price-to-earnings (PE) ratio of 25.41, slightly lower than the Nifty 500’s 26.5.

Vishal Dhawan, founder of Plan Ahead Wealth Advisors, notes in the report,

At the broad index level, valuations of Indian and US equities are similar. Several US companies are expected to show strong growth.

Dhawan advocates systematic investment plans (SIPs) in funds like Franklin US Opportunities Fund for those with a higher risk tolerance.

Some diversified and sectoral equity mutual fund schemes have a provision to allocate up to 35% to overseas equities.

Schemes like PPFAS Flexicap Fund have a mandate to invest in global companies.

Indian and US markets together exposes an investor to 30% of global GDP

The US accounts for approximately 25% of global GDP and hosts unique businesses in emerging sectors, making it an attractive destination for Indian investors.

A note from Motilal Oswal Mutual Fund highlights that combining investments in the US and Indian markets provides exposure to 30% of global GDP.

Additionally, the low correlation between US and Indian markets helps reduce portfolio volatility, enhancing risk-adjusted returns.

Over the past year, the S&P 500 surged 37%, outpacing the Nifty 500’s 25.29% gain.

“The US markets are up sharply, led by technology stocks in the last one year, but the move ahead is not going to be one-sided,” said Vineet Nanda, founder, SIFT capital.

Nanda believes investors could stagger investments and use a buy on dips approach.

However, wealth managers caution against over-allocating to the US.

Feroze Azeez, deputy CEO of Anand Rathi Wealth, warns, “The US market faces geopolitical risks, inflationary pressures, and Federal Reserve policy uncertainties.”

Investors should maintain a strong domestic equity position while considering small allocations to US equities.

Regulations limit options for US equity investments

Despite the appeal, Indian investors face limited options for US equity investments, distributors say.

This is because the Reserve Bank of India (RBI) enforces a cap of $7 billion for mutual funds and an additional $1 billion for exchange-traded funds (ETFs).

This restriction limits the availability of funds focusing on mid- and small-cap US stocks or sectors outside technology.

Many fund houses have halted new investments due to these limits.

For those keen on US exposure, options include large-cap-focused funds or Nasdaq 100 ETFs, which are heavily weighted towards technology.

Furthermore, international funds enjoy favourable tax treatment, with a long-term capital gains tax of 12.5% after a two-year holding period.

The post Are you an Indian investor looking to play the Wall Street rally? Here’s how to do it appeared first on Invezz

The cryptocurrency world is buzzing with the rapid rise of iDEGEN, an AI-driven meme token that has surged 4731% in its ongoing presale. Combining cutting-edge artificial intelligence with degen culture, iDEGEN has captivated traders and investors alike.

With a dynamic pricing model that fosters volatility and an innovative approach to community engagement, this token has become a standout contender in the crypto landscape.

A dynamic pricing model designed for traders

iDEGEN’s presale employs a unique dynamic pricing mechanism that creates a fast-paced and exciting trading environment. Prices are adjusted every five minutes based on market activity, offering three potential scenarios.

If at least one purchase occurs within a five-minute interval, the price remains steady for the next cycle. Consecutive purchases across two intervals trigger a 5% price increase, rewarding consistent demand. Conversely, inactivity during an interval results in a 5% price drop, providing opportunities for bargain hunters.

This dynamic approach appeals to traders seeking volatility and quick gains, driving significant interest in the presale. Since its launch on November 26, 2024, iDEGEN has raised over $4.2 million and sold more than 943 million tokens, demonstrating strong market enthusiasm.

The presale will conclude on January 1, 2025, and the token’s listing price will be 10% higher than the final presale value, adding further incentive for early adopters.

AI-powered community engagement

Besides the dynamic presale pricing model, the other thing that sets iDEGEN apart is its integration of artificial intelligence (AI) to foster community engagement and adapt its development.

Dubbed the “fatherless AI” born from a mix of a degen’s sock and an Nvidia chip, iDEGEN embraces a humorous yet innovative identity. Its AI actively learns and evolves by absorbing data from tweets directed at it.

This interaction-driven model enables iDEGEN to respond to every tweet and post hourly updates without moderation or training guardrails.

This highly interactive approach has cemented iDEGEN’s place as a community-centric project. By leveraging X (formerly Twitter), iDEGEN ensures its development aligns with user feedback and the ever-changing dynamics of the crypto space. The slogan “AI Born. Degen Raised.” encapsulates its ethos, combining technological innovation with the chaotic spirit of crypto degen culture.

As the presale nears its end, all eyes are on its listing in January 2025, where its value is expected to climb even higher. For investors seeking a mix of cutting-edge technology and high-risk, high-reward opportunities, iDEGEN offers a compelling proposition.

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