This article is going to be short and sweet. From a mass psychology and Technical analysis perspective, China makes for a better investment than India. China’s markets are extremely oversold, and the sentiment is decidedly negative and from a crowd psychology angle, we would rather invest in China than in India. Jim Rogers seems to concur
You can’t just invest in hope. Even If reforms started coming, it may not be enough to make the markets go higher, because markets have already factored it in. If the reforms are substantial, the markets may go higher. No indication of that.
If Modi made the currency convertible, if he made the markets open to outsiders, then I would have to be back in India again. So far Modi has been doing worthwhile things like addressing some social issues—I am all for that, and that is great for a lot of people—but India needs more.
You have saved your farmers by making it illegal for foreigners to own more than five hectares—how on earth can an Indian farmer compete with an Australian farmer with 50,000 hectares? In history, India has been one of the great agricultural nations of the world—you have the land, the people, weather—God gave you everything. And then, he also gave you Delhi to mess it all up.
China’s GDP on a purchasing parity basis is now the largest in the World. India, on the other hand, is a long way from challenging the top front runners and will not be in a position to challenge China seriously at least for another century.
Source of image: knoema.com
China makes for a better investment than India for several reasons:
The market is extremely oversold; great companies are selling for a fraction of their former prices.
The sentiment is very negative, the crowd is panicking, and crowd psychology states that you should buy when the masses are fleeing for the exits. Here are some companies in China that could make for great long-term investments, CHH, CHL TCEHY, BABA, are good
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