Indian Stocks: Better Than 350 Percent Upside Potential
This is absolutely the time to allocate to India, there's no question about it," Porter Stansberry said this week on his excellent radio show.
I agree with Porter... The upside potential in stocks in India is dramatic – right now. The last time we saw these setup conditions, in 2008, Indian stocks soared by over 350 percent in two years. And today's setup conditions are even better than they were in 2008.
Let me explain...
Our good friend Rahul Saraogi joined Porter and me on the radio show to share the unique situation in India right now.
Rahul is a hedge-fund manager based in Chennai, India. He has been investing in India as his career for 14 years. And he told us on the radio show that India is "looking better than I've seen it in my career."
When Rahul talks, I listen... because Rahul has actually made me a lot of money...
In 2008, Rahul told me to "get over to India now." Many Indian stocks had fallen by 80%, and were trading at incredible discounts to true liquidation value.
I went to India. Rahul showed me around. I couldn't believe my eyes. Rahul took me to see many of the companies that he was investing in… and these were the cheapest stocks I'd seen in my career. So I invested with Rahul. Fourteen months later, I sold and pocketed a triple-digit gain. Ultimately, small-cap Indian stocks soared by 354% in two years.
Fast forward to now...
Small-cap India stocks were once again down about 80%. So I called Rahul and asked him how today compared to late 2008, when small Indian stocks started their 350%-plus run.
Rahul said that the opportunity today was much better than it was in 2008...
On Stansberry Radio this week, he told us: "Valuations are at 15-year lows." Meanwhile, the upcoming election "has the potential to put up strong leadership, which could actually be the tipping point for India."
As usual, when markets are near a bottom, investors are afraid to get in. And that's the case today. Rahul said he hears all kinds of excuses from investors... "India has too many problems, too many fees, X has to fix itself, Y has to fix itself, etc." But Rahul quickly points out that "when everything is fixed and everything looks good, that's the time to sell, not to buy."
We bought India in my True Wealth newsletter about three months ago – after small-cap Indian stocks had fallen by 80% and after talking with Rahul. My subscribers are up about 20% since we bought. Specifically, we bought shares of the Market Vectors Small-Cap India Fund (SCIF). It's extremely easy to buy for Americans, as it trades just like a stock.
That's definitely one way you can play it.
Rahul wasn't so concerned about the specific way you invest... as long as you simply get some money in. "India itself is going to do really well," he said. "You need to have a piece of India in your portfolio."
I suggest you get to know India, and Rahul, now...
You can listen to our radio interview with Rahul at www.StansberryRadio.com. You can check out his website at www.AtyantCapital.com. And you can read his brand-new book, Investing In India: A Value Investor's Guide to The Biggest Untapped Opportunity in the World.
India is a fantastic opportunity right now... Rahul is your best guide for how to invest. Get to know him... and get some money invested in India, now...
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.