The trade of the decade

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In his book Endgame, John Mauldin states the following: “at the bottom of the next US recession, we think emerging market countries could see their economies and stock markets finally decouple from the United States, and at that point, they could become the trade of the decade. We suggest investors use the time to find specific stocks and not just country ETFs, or find someone who can you the work for you. Fortunes can be made if you do your homework.

I’m in complete agreement with Mr. Mauldin. In my view, the developed markets are suffering from a combination of problems with the primary being overleverage and poor demographics (meaning an aging population). In contrast, the emerging markets remain underleveraged and are relatively young. The 21st century will be the Asian century as the American century comes to an end. If you agree with the thesis that the Asian markets will finally decouple, the Indian market in particular is going to provide some amazing investing opportunities. In another post, I’ll delve into the details of why I believe returns to investors in the Indian market will surpass returns relative to other Asian markets. The oncoming recession in the US, will provide an unparalleled investing opportunity for investors in the Indian market.

As Mr. Mauldin mentions the right way to gain exposure to these markets is via individual equities as opposed to just an ETF. Is your investment advisor/broker capable of doing the work for you? If not, the purpose of is to be the provider of unique investment insight on Indian equities and markets.

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