Indian Summer?
Many commentators on global markets and many investors are anticipating a major correction in equity markets and the risk factors do indeed continue to pile up. I am sure readers will have taken actions to mitigate risks and can sit calmly through any market turbulence, but if your strategy has involved banking profits to cash, what will you do with the available liquidity when we can say with some confidence that valuations are again attractive?
Obviously, while we are still ahead of any market crash, we can only speculate about where the best bargain prices might eventually emerge. In the meantime, I have been thinking about asset allocations calls on a geographical or regional basis and over a period it has occured to me that the Indian economy currently exhibits some characteristics that are similar to those prevailing in the USA before WW2, after which that economy boomed.
In this article I will explore the merits and limitations of such a proposition and help you to conclude whether or not an investment in India should be part of your new asset allocation in the near future.
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