I learned recently that the average PE of Indian stock market is even higher than US. How can people get so optimistic about the future of these stocks, especially when the Indian currency keeps getting devalued? In other words, foreign investment keeps getting devalued before they see real returns. What could happen is, you think you are making money in the game, but when you try to leave the table, you can only convert your chips with a big discount. Edit: For those who said China is in decline and India is in fast growth, I’m attaching the electricity consumption of both countries. It doesn’t seem to support that claim. It seems to me that if one country has to be in decline since 2018, that is India.
China’s decline and Modi is a good salesman. Long term its risky.
Worshippers of Adani bhagwan.
It’s a bad investment for Indians living abroad especially US as SPY returns are better than nifty. But india will continue growing (modi or someone else in power), and with the continued inflation and lower savings rate by banks more people Are pumping money into equities. So in a way, this will keep the valuations up (however inflated they are).
It's more about where you get higher number of people. China's population is on a decline India will still have a decade till population reduces. It's a capitalist market, more people more demand , more profit more bonus for c-suite. All difficult financial jargons aside more people you find to sell, better future revenue prediction, more share price.
More like 3 decades where Indian population will increase to 1.8 billion. Pakistan population will double from 250 million to 500 million in even smaller space.
The thirst for any real economic growth will make foreign investment continue into India, even at insane valuations. The potential is too high and demographics are too good. So yes, currency adjusted returns haven’t been great but everyone is playing the decade+ long game here. Makes sense for big investors. Doesn’t for average people imo but debatable.
Given the the U.S. has been devaluing the dollar. The economics are even worse for India.
China > India
You said all that but China looks like this:
And India looks like this:
Literal scam stocks, avoid
Even ccp shills saying china > india would say no one would dare invest in chinese markets and even the most nationalistic chinese invest else where 🤣. That's how f'ed up china is
I guess that’s backed by the hyper economy growth.
Do they have hyper growth?