Comments by Chris Wood in a Barrons interview someone sent me.
India is very different. What's good about China tends to be bad about India. And what's bad about India tends to be good about China. India is much more the U.S. model of the stock market. You have a huge number of companies, a wide diversity of sectors.
In India, the question of who wins and who loses in any sector is much more important than in China. You have more than 100
years of stock-market history, and a more Western-style legal system. In other words, a real element of due process, which is not the case in any other emerging market. India is great, India is my favorite emerging-market equity story. If I was only going to invest in one, I would invest in India because of the wide diversity of companies you could invest in. But it will always have a premium, good price/earnings rating.
The other virtue about India is that export is unimportant in terms of gross domestic product. China is more about exports than India, but it's not all about exports, either. That's why both China and India this year have confounded most economists' forecasts, growing much more than most people were predicting at the start of the year despite the fact that the U.S. is barely growing. |
