OFF INTO THE WILD WET YONDER How does this...
India Poised for Another Strong Performance
O’Neill, the ex-Goldman Sachs Asset Management chairman, and the man best known for coining the term “BRIC”—the acronym that stands for Brazil, Russia, India, and China—says it is the best leadership the country has had in a generation. He also believes that, together with lower oil prices and demographics, the country could outgrow China, expanding at a rate of more than 7.5% for the remainder of the decade.
If you haven’t been paying attention, India had an astounding 2014 in terms of market performance. Indian ETFs surged last year and put up performance numbers that would fill almost any mediocre fund manager with envy.
A quick glance at the top Indian ETFs show that some of their YTD returns are already roughly 10% or more, with one year returns averaging over 40%.
Prime Minister Modi has been characterized differently by many within the global media, but one recurring theme is that he is “pro business,” and is determined to change how the international business community views India.
Whether your opinion is positive like O’Neill’s, or more skeptical like Jim Roger’s (see video below), a little bit of India in your portfolio is definitely not going to hurt—yes, even at current market valuations—especially when compared to any developed market around the globe.
O’Neill puts it another way, “China growing at 7% adds another trillion U.S. dollars to global GDP, and in purchasing power parity (PPP) terms is more than double the United States. This year India will add more than double the United Kingdom (the strongest G7 country outside the United States) in PPP terms to global GDP.”
In other words, emerging markets, especially China and India, are still the driving forces behind the global economy.