frand(x)

The Emerging Markets Bubble

This is so much baloney. On crisis: UK had a banking crisis.
India has never had one in the last 200 years. The developed markets are prone to such cyclical booms and bursts. I still love EMs bcoz they do things slowly, carefully.
EMs are getting higher multiples because they are posting much higher growth rates than anywhere else in the world. Last week, I met an Indian textiles company called KPR Mills which has EBIDTA margins of close to 28%. I think they have a great model, a great product at a great price.
The demographics in EMs is favourable, incomes are rising and all the suppressed aspirations are converting into cash sales. Each domestic market is bigger than the whole of Europe: you see more Sony Bravias and Volkswagon Passats being sold in each of the EMs than in Europe and elsewhere. These markets cannot be missed because there is so much happening there.
My take is that EM as a whole is not a bubble. At least the liquid traded sectors are not bubblicious, though realty in some pockets could still be. Sply true of Brazil.
Finally, if India sneezes, Brazil stands to benefit. Just look at the replacement elasticity of goods, such as auto ancilaries, textile and clothing, ITeS and many more. So to bundle them all together in one EM basket is completely wrong. Newspaper hacks can't tell their Brazil from their India.
Fully finaly, the New Yorker's classic Mojito is now the favourite drink in Brazil, Ireland and in India. The Chinese still prefer American beer. How much more globalised can you get?

Six Essential Indian Stocks (INFY, WIT, SAY, HDB, HTX, SIFY)

Just shows the overwhelming ignorance of the writer/Forbes columnist on Indian stocks.
2. Refer HDFC Bank: is a private sector full service bank. Its parent HDFC is a leading mortgage lender. HDFC Bank does very miniscule mortgage lending.
3. HTX (Hutchison Telecom International) is NOT an INDIAN stock. It is Li Ka-Shing's company, listed in Hong Kong. HTX owns 67% in an unlisted Inidan telco, called Hutchison Essar (in JV with the Essar group).