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Mumbai Terrorism Clouds Templeton's 'Buy India' Call

Investing in countries like India require a large volatility tolerance and a longer term investment horizon. For individuals it is probably best to participate through an ETF or a mutual fund. Keep in mind that markets are discounting mechnisms and share prices already discount a lot of bad news. Also India's GDP was recently running cosiderably more than 7%. It is a democracy with strong institutions and a growing middle class. Also there are many who are convinced the highest returns over the next 10 to 20 years will be in countries like India, China, and Brazil. These markets are highly volatile even in good times but for those who are adventuresom and long term oriented today's values may offer outsized returns.