Investment stalwarts from around the world are talking highly of India’s growth prospects. Latest to believe in the country’s growth story is Howard Marks, the Co-Chairman of Oaktree Capital. Speaking to ET Now, Howard Marks said, “I made my first trip to India in February and I was very impressed by the people I met and by the power of the country. And I am a great believer in India’s future.”
Just last week, Marc Faber reposed his faith in India’s Prime Minister Narendra Modi and predicted that he would be re-elected in 2019 on the back of the development agenda. Earlier last month, in an interview with CNBC TV18, renowned investor Marc Faber — the author of Gloom, Boom & Doom report — had reinforced his preference for investing in India over the US on the back of a strong government led by Prime Minister Narendra Modi, whom he had referred to as “a leader (who) is gradually implementing reforms against the opposition from vested interests and corrupt government officials”.
Jim Rogers had also expressed his regret about not having been invested in India. Instilling faith in PM Narendra Modi and his policies, Commodities Guru Jim Rogers said that he should have been more patient and waited for Modi’s plan to play out before selling his positions in 2015. In April this year he said,“If Modi continues doing stuff like GST, then not just me, everybody has to pay a lot more attention to India.” He also lauded Modi for passing the crucial GST. “On GST, I am amazed, shocked and stunned,” he told Livemint.
Earlier this month, Mark Mobius, the emerging markets champion had tweeted,”We believe valuations and sentiment continue to be supportive of emerging markets”. In a recent blog, the executive chairman of Templeton Emerging Markets Group said that the first half of 2017, has been bright for emerging markets. In fact, the the MSCI Emerging Markets Index is up by 18.6% in year as compared to 11.02% gain in the MSCI World Index.
Not merely are these renowned market gurus bullish on the prospects of India, they also feel that the US equity markets are overheated. While speaking about the US equity markets, Marc Faber observed, “If you look at the markets, there are lots of stocks that are lower, and significantly lower than they were at the highs. And so, it’s not an all-clear signal.” The veteran believes that the risks have now increased. “Don’t be overly optimistic,” Dr Doom cautioned. While Marc Faber advised caution, Jim Rogers predicted “the biggest crisis in his lifetime” to be round the corner. “We could see the worst crash in my entire life pretty soon,” said Jim Rogers in a recent conversation with Kitco news.
In fact, Marc Faber, who is usually bullish on Indian equity markets for very long term in comparison to the US markets, expects Indian markets to outperform the Dow Jones index in the current year. Over the past couple of years, Marc Faber, also known as Dr Doom, has reiterated his belief that the Indian equity markets will outperform the US markets over the next 10 years. Speaking to ET Now, Marc Faber expressed that the Dow rally has thin support.