Jim Rogers says he would ‘think twice’ before investing in India

[Guest]

Re: Jim Rogers says he would ‘think twice’ before investing in India

What, Jim Rogers and George Soros don't see eye to eye?

Go figure.

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The Global Guru: George Soros Turns Bullish?

Fellow Investor,

While most investors were dumping stocks across the board early last week, The Economic Times of India reported that billionaire global investor George Soros had gone on a buying spree in the Indian stock market. Soros' Quantum fund has invested close to $140 million in India since February and has picked up the pace of its purchases during the past couple of weeks. In placing his bets in a high-risk, highly volatile market such as India, Soros is trying to do what very few investors do successfully -- which is to pick the bottom of a bear market. Granted, $140 million is not a huge bet for Soros' Quantum Fund. But it does signal a shift in the thinking of the granddaddy of hedge-fund managers.

Sincerely,

Nicholas A. Vardy

[hayekvindicated]

Re: Jim Rogers says he would ‘think twice’ before investing in India

Perhaps, but India has what China does not...a substantial base of internal consumers. Which makes it less dependent on the typical Asian mercantilist national economic strategy.



Well there's no danger of "too many political parties" in China anytime soon...:rolleyes:



And China is Communist-free is it? :p

And a bastion of free markets as well?

Not bloody likely.



Have you been to Delhi or Mumbai in the past 5 or 6 years? Spent any time in any of the hotel lobbies watching what is going on? Certainly the country faces major challenges, but my observations suggest much greater potential in spite of the ineffective governments and rampant civil service corruption...two mainstays of the nation identity that have been in place since Independence IMO. ;)

I go to Mumbai and Delhi every year and know what's going on.

[c1ue]

Re: Jim Rogers says he would ‘think twice’ before investing in India

Perhaps, but India has what China does not...a substantial base of internal consumers. Which makes it less dependent on the typical Asian mercantilist national economic strategy.

Point of note: India is a net currency account deficit nation.

So all that nice consumption - is ultimately too much.

Country CAD Population CAD/CAD per person

India

-18,530

1,139,070,000

-$16.27

People's Republic of China

372,000

1,326,570,000

$280.42

The good news is that India's foreign exchange reserves are $284B - or $249/person, so the CAD is ok. However, any major program of internal infrastructure investment would pretty much come straight out of reserves. Not very sustainable.