Monday, March 16, 2015

Thought on the India ETF


Well, this chart shows a nice long sedate rise:


And it's even CAD-hedged, which means a rupee collapse will not hurt you. Heck, you can make a fortune on a rupee collapse if the equity market spikes in rupee terms to compensate, right?

Let's list the pros and cons:

Pros

1. They'll apparently have a good monsoon this year, according to the data so far.
2. Oil is down and it's a big part of their current account deficit.
3. White-ass honky crackers love Modi because he wields the Holy Handbag of Margaret Thatcher and they think it actually will help him modernize a medieval economy that functions on the level of sub-Saharan Africa.


Cons

1. The majority of India's economy is farming, so this ETF is essentially a play on business, not on the Indian economy at all.
2. It's dumb money.


The pros above are the reasons you'd invest in gold miners in June, by the way.

So I guess I'll just leave this alone.

Nice to see BMO making the move and providing an India ETF, though. Hopefully this one won't suck as bad as the China mutual fund they ran for a decade without making anyone a single fucking cent.


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