I feel that in India, it is a quality regime and that is one of those things which has frustrated many investors which is that they all though that as you get this big hope and you get this big revival in India, a lot of the junk will also rally Instead what we are seeing in India is that the quality regime has continued and all these advocates of buying these low quality stocks in India has got burned over the last few years and particularly over the last year. And I do not see a change in that regime. I still feel that quality is the way to go as far as India is concerned because the recovery is in the works but it is a gradual recovery.
So, in that case the story for the last 20-30 years has been that always be short on what the government does and be long on what the private sector does in India because the government systematically disappoints. I do not see that changing too much. Sure, we have been offered a so called cleaner government and stuff but in terms of execution it always lags what has been promised and we get excited periodically about what is going to be delivered and we systematically get disappointed and yet the private sector in many ways the quality people in the private sector continue to march ahead.
I still feel that regime is in place in India despite all this hype which takes place every few years.-said Ruchir Sharma,Head-Emerging Markets,Morgan Stanley
Some stuff I am reading today morning:
The H1-B Visa program is a scam (Cringely)
The Macro Funds’ Big Greek Gamble (Bloomberg)
Listing of stock exchanges (Mint)
SIP in Mutual Funds (Bala)
Nomura Research Report: Britannia Industries (MyIris)
Delusions of future outperformance (Common Sense)
How being human hurts your portfolio (WP)
Greece is the canary in the gold mine (Daily Reckoning)
The rise of the Compliance Guru (Bloomberg)
The Wit,Wisdom and Vitriol of Carl Icahn (Big Picture)