Singapore 15 Feb 2021
Presenting ‘2020 — The Movie’
The ‘movie’ above shows total returns (including dividends) made by investors since January 2020. The S&P 500 chart on top shows a rolling 3 month time-slice and the scatter plot below shows the returns/volatility of the Equities + Equity Fund components of investor portfolios during that same period.
The ‘opening scene’ of the movie is as expected. We had seen a sharp Covid related fall during Feb-Mar and every investor got caught on the wrong foot (average return of -27.5%). …
Singapore 9 Feb 2021
Equity buying pauses
The chart above shows cumulative buying for Equities and Equity Funds since early October. For the first time since the vaccine announcement, the buying has paused. While Funds are still being bought, there has been selling in Equities with the combined results being close to zero for the last 2 weeks.
There was a small pause during the holidays as well, but that happens every year and is therefore a non event.
What makes this current pause even more interesting is that it coincided with our first 5%+ equity prices retracement of the…
Singapore 5 Feb 2021
Fixed Income Investors move from Banks to Real Estate
In hindsight, bond trading during 2020 had all the elements of a Bollywood movie, with a pretty formulaic story line. It began with the villainous market beating up the protagonist (a.k.a. investors), followed by some melodrama and eventually a happy ending with a twist.
The chart above shows the cumulative buy/sell volumes of Bonds by Industry Group. As you can see there is a clear pattern for Real Estate and Banks, while the other sectors were quite static.
The chart below shows the average YTMs on which…
Singapore, Jan 25, 2021
Steady buying in SGD REITS
We saw steady buying of SGD denominated REITS pretty much all of last year, except for a short period during the Covid sell off. This buying picked up pace towards the end of Q3 when Singapore Residential Non-Landed prices also started rising.
In fact, if we look at data only from September onwards, we see that the ‘buy story’ is pretty much REITS only. All other sectors put together have seen net selling
Singapore Jan 19, 2021
Chinese Equities rise with a lag
In an earlier issue of this newsletter, we had noticed that while investors had started buying Chinese equities in early November, prices had refused to budge. Finally (in a move that reminded me of a second hand stick shift that I once owned!) the gears engaged after a perceptible delay and Chinese equities jerked forward.
The chart above superimposes the China A50 ETF prices on top of cumulative buying volumes of Chinese equities. As you can see, the delay between start of buying and price rise was almost 2 months…
Singapore Jan 12, 2021
In the chart above we have plotted the cumulative trading volume by the major asset classes since the US elections. For purposes of clarity Equity Funds have been grouped with Equities and likewise for Fixed Income.
As you can see, the ‘Buy Equities and Sell Fixed Income’ trend is alive and well.
But there are a few key differences
There are some key differences as compared to what we saw during most of 2020. The chart below is for the same time period as above but shows more granularity in asset classes. …
Singapore, Jan 4 2021
Happy New Year and welcome to Canopy’s Investor Behaviour Newsletter (Week 1 of 2021). I hope you managed to switch off and spend some time with your loved ones during the break.
Investors ended 2020 on a really bullish note for equities. The chart above shows cumulative buy and sell volumes by the 3 major asset classes for the entire year. As you can see from the chart the fixed income ‘wild swing’ had subsided by October and the last 2 months have been all about equity buying.
The next chart (below) drills deeper into the…
Singapore, Dec 21 2020
Welcome to Canopy’s Investor Behavior Newsletter (Week 52 of 2020). This week we will look at Brexit, or as the market would like to call it, the lack thereof.
The chart above is a running total of buy and sells for UK and European assets. As you can see from the chart, there is a consistent buy pattern on UK equities which has been going on since April (and has followed the overall ‘risk on’ sentiment that we are seeing worldwide).
These UK equity purchases gained momentum since mid October. This is very interesting because this…
Singapore, Dec 14 2020
This edition (week 51 of 2020) of the newsletter begins with a bit of a gloat. In our LinkedIn post on Oct 21 we had said that Canopy data when combined with bank research was suggesting that the time was right to buy North Asian equities. The chart above shows that North Asian equities (defined as an average of CSI 300, TAIEX, KOSPI and Nikkei 225) outperformed the S&P 500 and DAX by around 6% since then.
The data … it talks !!
Thank you so much for your emails and also for responding to the…
Singapore, Dec 7 2020
November was the month of buying equities and we saw net buying in every single equity asset class we track (see chart above). Essentially
To find which stocks were most popular please look at the chart below.
Tanmai is the CEO and Founder of Canopy, which is an investment reporting and analytics company. Here he analyses investment trends seen in Canopy's meta-data