Saturday, May 10, 2014
"The last three years have been the most terrible time in India," Indian hedge-fund manager Rahul Saraogi recently told our Steve Sjuggerud.
"India has endured corruption scandals, political scandals, high interest rates, lower investment, a weak currency, inflation..."
Steve turned bullish on India in February... His friend Rahul – whom Steve calls the "Warren Buffett of India" – thought the country presented a huge opportunity.
Rahul runs a small-cap Indian fund in Chennai. He has made huge profits after Indian stocks have gotten hammered. From the February issue of True Wealth...
Steve invested with Rahul in late 2008 after Indian stocks had fallen 80%. In early 2010, Steve withdrew his money with a triple-digit gain. And today, Rahul says the values are even better...
Rahul appeared on an episode of Stansberry Radio with Porter and Steve last week... And he says India is the cheapest he has seen in his career...
Porter agrees, saying "this is absolutely the time to allocate to India."
The strong leadership Rahul referred to is India's likely new Prime Minister, Narendra Modi. Modi is the current Chief Minister of the Indian state Gujarat. Since Modi took the helm, Gujarat has led India in GDP growth, with around 16% of the country's total industrial output and 22% of exports. That's impressive, considering Gujarat is responsible for just 5% of India's total population.
That's because Modi is business-friendly... He convinced Indian billionaire Raja Tata to build a car factory in Gujarat by removing the typical red tape. He has heavily invested in the state's infrastructure. And he has shunned the typical backroom dealings and bribery in India and the country's socialist ideals (for example, bidding for government contracts in Gujarat is done online). And he supports privatization of ports, water, and power.
In addition to a potential change in government, India is also growing like crazy... And its people are getting richer. As David Nadel – portfolio manager of the Royce Funds' International Smaller Companies Fund – told Barron's...
Thanks to government subsidies, rural land values are rising, giving the 70% of India's population that lives in rural areas more wealth. As Nadel said...
Barron's cited a report from a local Indian brokerage house saying the penetration rate for cars, computers, laptops, and air conditioners is less than 5%. It's less than 15% for refrigerators, washing machines, and motorbikes.
Meanwhile, Steve's True Wealth subscribers are up nearly 20% on the Market Vectors India Small-Cap Fund (SCIF) in less than four months.
Steve hosted a live webinar in Baltimore this week. He explained the strategies he uses in his custom software-based service, True Wealth Systems, to produce huge gains...
Steve and a team of "quants" (financial engineers) spent years back-testing data to find trading strategies that produce safe and consistent gains in the market... Thus, True Wealth Systems was born in 2011. Since that time, Steve has amassed an astounding track record... As of May 8th, all 14 positions in the True Wealth Systems portfolio are winners, up an average of 53%. And last month, he closed out of his biotech position for a 184% gain in less than 16 months.
On the webinar, Steve discussed his secret trading strategy... He's looking for situations that go from "bad to less bad." But that's just the beginning...
In addition to further discussing his True Wealth Systems strategies, Steve explained why stocks don't equal the economy. Investors can often get better returns when the economy is bad. And he explained why investing in exchange-traded funds often makes more sense than simply investing in individual stocks.
If you missed the webinar, you'll find the recap – plus an opportunity for one free year of True Wealth Systems – right here. I recommend you take Steve up on his offer today... The event "extension" is only good until Tuesday at midnight.
Date Range:5/1/2014 to 5/8/2014
Date Range:5/1/2014 to 5/8/2014