Chart of the Week: Markets Behaving Differently
Posted by: Sam Lees
Our Chart of the Week shows one of the great long-term opportunities for investors.
One of the great attractions of India is its ability to plough its own furrow, and go against the big global trend.
In the chart below, you can see that, while the rest of the world got into a tizzy in the Autumn, India was doing its own thing.
Over this period the India was up 14% vs. the S&P 500, down 10%. That’s a huge 24% difference in just over 10 weeks.
India was one of our Trades of the Decade back in 2010 and we’re still excited about its potential.
The country faces challenges e.g. India imports over 80% of its oil so is affected by rising oil prices and a stronger US dollar and there are elections coming up this year.
But India often behaves differently, as you can see in the chart below. It currently has a government that is committed to reforming the country. This contrasts with the political uncertainty in the UK, US and much of Europe. India also has an unbeatable combination of youth, a growing middle class and reforms aimed at unlocking potential that will drive superior returns for many years to come.
Chart 1: India vs. the US