EQ Saturday Sapience #64

Equity Intelligence 27th April 2024

India's economy, while not on track to mirror China's rapid growth, still holds significant potential for transformation and global influence under Prime Minister Modi's assertive leadership. This potential is poised to determine the economic and social trajectory for India's vast population over the next few decades, particularly in the context of deglobalisation. Major players in the oil and gas sector, notorious for high carbon emissions, are increasingly adopting carbon capture and storage (CCS) technology to mitigate their environmental impact, aiming for substantial reductions in emissions. Meanwhile, in India, household consumption patterns reveal an increase in energy expenditure, possibly due to higher energy costs or greater energy consumption, outpacing spending on food and other non-food items.  

• How strong is India’s economy?... It isn’t the next China, but it could still transform itself and the world… Mr Modi’s India is an experiment in how to get richer amid deglobalisation and under strongman leadership. Whether it can grow fast and avoid unrest over the next 10-20 years will shape the fate of 1.4bn people and the world economy… Read more
• Hard-to-abate industries, particularly oil and gas, are racing to increase their carbon capture capacity as they strive to decarbonise operations. Despite being some of the biggest carbon emitters, many oil and gas majors are optimistic they can dramatically reduce their emissions by using carbon capture and storage (CCS) technology… Read more
• Household consumption expenditure in India… Expenditure on energy grew faster than expenditure on food and non-food expenditure. This could either mean energy prices increased or that households are consuming more energy… Read more
• Filter, process, and build: learning actively… The importance of not just passively imbibing content, but putting real deliberate effort into thinking about what to read, how to read it, and how to process it. You can teach yourself a lot, but you need to put in about as much effort as a real teacher would. Just passively imbibing content is not going to lead to true learning that accumulates and compounds… Read more
• “The most dangerous investment conditions generally stem from psychology that’s too positive. For this reason, fundamentals don’t have to deteriorate in order for losses to occur; a downgrading of investor opinion will suffice. High prices often collapse of their own weight.” —Howard Marks