Re: the India Fund
It has performed better on a NAV value basis than the IGF over the last few years. Net asset value as of March 31 was 8.75. The stock's now around 8 1/8. I was looking for diversification into countries with low correlations with the US market. Thanks to the 15 year US bull, you end up in just a few crummy places, India being one of them. It's a country with serious problems. I happen to work with a lot of people from India, and I talked to them extensively. Basically, the new government is bad news and the banking system stinks. But they have excellent schools. development is at a breakneck pace. Many of my friends feel that the "next Silicon Valley" will be in one of certain cities in India due to the relatively cheap but highly educated tech workers
there and the schools. The India Institue of Technology is one of the world's premier graduate-level technology schools. There is an exploding middle class according to the people I know. The middle class IMO is what creates stability.
In sum, I looked at the India Fund, thought I was getting it at a discount, and figured it would be aÿgood long-term investment I first checked that I wasn't liable for any taxable capital gains distributions, which is one of the first things I look for in CEF's.
I made one major mistake. I relied on trustnet.co.uk for my discount info, since I didn't have any way of getting current NAV info. DON'T do this. A lot of their data is in error. So in the high 8's I ended up paying NAV. A subscription at http:/www.icefi.com may be worth it if I'll be investing in CEF's, but I don't think I will too much due to the reasons Paul mentioned.
Other countries I want to invest in - South Korea via the Korean Fund (my wife is Korean and I can get info through her family), and Japan. In Korea, people kill themselves if they don't get into the best schools. Like Japan, it is an incredibly proud country, but IMO even more so. That pride got them into this mess, but I can't imagine that they won't right themselves and come out much much stronger.
The big risk in Korea is North Korea. If South Korea ends up having to bail out North Korea when North Korea falls, South Korea will hurt.
Mike |
