India Stocks: Long Lasting Value

Thursday, November 27, 2008

You all know I have been arguing that the Indian market is bottoming...and that the time is ripe for picking good companies for long term growth.  Here are some points I consider to be important:

  1. Demographics are not changing; aspirations of young, hard-working people in our economy are not changing.
  2. Expect India to take advantage of low commodity prices to secure large, long-term supply committments while the Developed world is trying to get back on its feet.  To ensure low prices, it would be best to secure the contracts before stimulating the economy too much.
  3. Expect India to take advantage of job losses in the Developed world to buy and lease technical know-how at rock bottom prices.  Again this has to be negotiated as a long term commitment.
With the amount of fuel that has been poured by the Central Banks I expect a rip-roaring fire to rage;  inflation will explode....and energy will be king...AGAIN.

When commodities start up again, emerging markets will explode;  if you are positioned correctly, so will your personal holdings.   As I said in my post Boom being written the bust is here, and in the ashes the boom is being written.

Other posts in this series:  Buy-In Levels Reached,   Over-qualified and Under Leveraged

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