![]() Independently, Zac has been identifying HDFC Bank as a bullish technical opportunity over the next few years.įor a position trading perspective, an investor could use the May 2022 low as an invalidation or re-assessment level regarding the bullish thesis, and otherwise let it run to the upside if it remains above that threshold.īanks in the United States have much slower growth than HDFC Bank, but they also trade at low valuations. With favorable demographics, and low domestic and foreign debt, I continue to have a long-term bullish outlook on India in general, and India’s banking sector specifically. India remains underbanked in general, with only 37% household debt as a percentage of GDP.īank for International Settlements, Lyn Alden Additionally, the bank is well-capitalized, with good internal metrics, and has a very diversified loan book.Īdditionally, HDFC Bank’s upcoming merger with HDFC Ltd will further diversify the bank to more types of financial products. The bank has a persistent double-digit growth rate, and a valuation that while somewhat rich in absolute terms, is currently quite reasonable relative to its long history. HDFC Bank ( HDB), the largest bank in India, is pretty interesting at current levels. I like to make some of the pieces in this series public occasionally (not just in Stock Waves), so here’s this week’s edition of “Where Fundamentals Meet Technicals”, with the goal of providing a watch list of names that are worth digging more into. Zac and Garrett focus on technicals only, and I focus on fundamentals only (or 95%), and so I go and find stocks that we’re all bullish on for different reasons, or all bearish on for different reasons, and see what’s going on there. Several times per month for Stock Waves, I try to find opportunities where the fundamentals and technicals align and publish a short-form piece on them. That of course doesn’t guarantee that a bottom is in, and could always get a lower low, but those types of opportunities are at least good to be aware of for further research. When possible, I like to buy high-quality assets that recently fell sharply and have shown some semblance of a bottom, marked by a momentum shift from negative to positive, for example. However, focusing on some basic technical indicators can help with risk management. ![]() ![]() I want to buy companies and other assets with time horizons of 3-5 years, or even longer if possible, and let them compound over time. When it comes to investing, I focus almost exclusively on long-term fundamentals. ![]()
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