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The information found on “The Stock Boys” is for informational purposes only. It should not be taken or used as financial advice. The Stock Boys makes no guarantee or promises as to any results that may be obtained from using our content. No one should make any investment decision based solely on the information found on this site and without the help of a financial adviser or conduction of their own research and due diligence. The Stock Boys disclaim any liability for any results incurred by the use of our information, content or articles. Your use of the information of materials linked from the site is at your own risk.

April 2024
M T W T F S S
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891011121314
15161718192021
22232425262728
2930  

Disclaimer

The information found on “The Stock Boys” is for informational purposes only. It should not be taken or used as financial advice. The Stock Boys makes no guarantee or promises as to any results that may be obtained from using our content. No one should make any investment decision based solely on the information found on this site and without the help of a financial adviser or conduction of their own research and due diligence. The Stock Boys disclaim any liability for any results incurred by the use of our information, content or articles. Your use of the information of materials linked from the site is at your own risk.

Emerging Markets Foreign Investing

Is India the new China?

With all the Focus on China, India’s getting poised to become the leading emerging market.

Foreign investing, the thing you say you’re doing to diversify, and by that you’re referring to the couple EU equity ETFs you bought. ETFs you’re so disappointed with you just hold it to brag about your “foreign investment” because at this point doing so is a better ROI than the ETF itself.

Foreign investing is actually a very solid investment strategy, but a risky one. It’s hard enough to invest in a market you actually live in let alone one where you don’t even use the same alphabet. There are some markets however that you can do very well in just by not picking something completely worthless. One such market was China. For the past ten years, the Chinese GDP has offered steady, solid gains averaging 8.26% which is compared to the USA’s 1.42% average growth rate. It makes you wonder what the Chinese were doing better than us. It’s simply explained however, as China has a humongous population which has just reached the similar economic standing as the rest of the “West”. Their cheap labour cost leads to pretty much everything being made there, which provided a firehose of cash flow for China to grow with. But now that China’s evolved past an industrial country and is branching out to more “advanced” industries such as tech and banking, outside cash is slowing down and you can be sure that Donald Trump is not helping China at all. While good ol’ Donnie might think a trade war will help, Chinese President Xi Jinping knows it won’t and so does everyone with a couple bucks in a trading account. Just look at what happened to US Futures after The White House released their list of new tariffs on 200 billion in Chinese goods.

US Futures immediately after Trump released list targeting 200 billion worth of Chinese for tariffs

Here’s where India comes in, they have the same massive population as China, they’re just branching into major industrial industry so you can expect foreign cash flow to flow in. Plus, their economic growth has just started to outpace China’s. Even in the past five years, India just surpasses China’s growth by 0.02%. It’s not much, but it could be an indication that India’s about to become the leading emerging market in terms of GDP Growth. This place’s India in the same point China was 10-15 years ago, so it’s ripe for growth, and better yet not many people are paying attention yet to India, they’re still focused on China.

In particular one man is still focused on China, Donald “my I.Q. is one of the highest” Trump. He hasn’t set his sights on India yet, so they’re lucky enough not to receive the daily Twitter rant that every ally of America has come to dread. Each of the factors has managed to put India in the lead as one of the safest and most stable countries to invest in currently. Our personal picks to access the market are primarily through buying indexes at the moment. by purchasing a nice basket of equities found in the SENSEX index and the NIFTY 50 (such a good name) are a good bet. We plan to continue looking into ways to access and invest in the Indian market, so expect an article later on about a few specific large caps that you can check out, real soon. Stay tuned.

SENSEX, NIFTY 50 and S&P 500 Quotes by TradingView