EQ Saturday Sapience #34
Equity Intelligence 30th September 2023
Investors are increasingly grappling with the enduring reality of high interest rates. Meanwhile, the necessity for enhancement in India’s average human capital levels—a determinant of labour force productivity influenced by various educational and health outcomes—is becoming more palpable, especially if India aspires to leverage the benefits of its demographic dividend. A focus on sustainability is becoming a priority for global and domestic occupiers, instigating a surge in green-compliant offices across India. The impending implementation of mandatory reservation for women in Parliament and legislatures in India is poised to initiate transformative socio-economic trends.
- Why Fear is Taking Hold in Financial Markets: Investors are confronting the likelihood of prolonged high interest rates, leading to escalating concerns in financial markets. The ensuing months could be more tumultuous if investor scepticism continues to mount regarding the persistence of high rates, as projected by bond markets and affirmed by central bankers. Read Here
- India’s Labour Force and a comparative view with China: Despite a substantial portion of India’s populace being of working age, the labour force participation is lagging, with myriad challenges such as low labour rate and workforce productivity hampering India’s growth trajectory, especially when compared to China's 76% labour force participation. Read Here
- The Rise of Green-Compliant Office Buildings in India: With sustainability at the forefront, India is witnessing a boom in green-compliant office buildings, particularly in Bengaluru, which tops the list with the highest number of such buildings, constituting about 30% of the total stock across India. Read Here
- Transformative Legislation: Women Reservation in India: The introduction of a groundbreaking law mandating seat reservation for women in Parliament and legislatures is ushering in a new era, setting the stage for profound shifts in India's socio-economic landscape. Read Here
- Picture to note: The cost of sequencing a human genome was over $100 million in 2001. Today, it is only $200. A similar trend has been seen in the past for all technologies and will be seen in the future too for emerging technologies like AI.
- Quote: “You know what Rudyard Kipling said? Treat those two imposters just the same success and failure. Of course, there’s going to be some failure in making the correct decisions. Nobody bats a thousand. I think it’s important to review your past stupidities so you are less likely to repeat them, but I’m not gnashing my teeth over it or suffering or enduring it. I regard it as perfectly normal to fail and make bad decisions. I think the tragedy in life is to be so timid that you don’t play hard enough so you have some reverses.” – Charlie Munger on making bad decisions.
We hope these pieces of content and reflections will provide you with insights and food for thought over the weekend.
