Posted by: union03g | May 19, 2009

India is Back!

India’s Bombay Stock Exchange shut down overnight due to a 14% jump in their market. I’m starting to seriously consider going long the EPI (remember that annoying commercial?) in the next few days. Their political regime change overnight sets the stage for foreign investment (more increasingly white collar outsourcing), capitalistic reform and corporate growth that can raise all boats for Indians.

I also believe that soon Obama will be forced to ally with Indians in the effort to secure Pakistani nuclear weapons from Al Queida/Taliban terrorists. Pakistan will hate this, but we will have no choice but to inject billions into India’s military/weapons technology to hunt down the crazy cave-dwellers who are gathering in Pakistan and secure the Pak nukes. This will send lasting positive ripples through India’s infrastructure, markets and democratic ideology – especially with Obama sending the message.

EPI, 1 year

EPI, 1 year

India’s obviously glowing right now, outside of of the abject povery, resource constrains, overpopulation, broken roads, lack of electricity and unvetted political leaders. But for a long term play, I think it works!

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Responses

  1. Interesting hypothesis. While certainly some sort of economic freedom is a necessary precondition, to quote Neil Young, “there is more to the picture, than meets the eye.”

    Some data (this list is not surprising):

    http://www.heritage.org/index/Ranking.aspx

    109 Year Compounded Real Equity Returns (this one is):

    Australia: 7.3%
    Belgium: 1.9%
    Canada: 5.9%
    Denmark: 4.6%
    Ireland: 3.5%
    Japan: 3.8%
    South Africa: 7.1%
    Switzerland: 4.1%
    United States: 6.0%

    World: 5.2%


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