For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"The India Fund (NYSE: IFN) is our top speculative idea for 2008," says Carla Pasternak, editor of High Yield Investing. "As investors fret that a downturn in the US housing sector could cool global growth, the world's second-fastest growing major economy after China is forging ahead.
"India's economy is expanding at a rapid +9% clip, nearly double the latest growth rate put in by the US economy. It's no wonder India's benchmark Bombay Sensex Index is up 44% this year.
"And the future looks equally strong. Thanks in part to US firms outsourcing their customer service and data-processing jobs, India is seeing the rise of a new middle class. Estimated at some 300 million of the billion-plus population, India's middle class is mushrooming at a rate of about 20% a year.
"A growing consumer class with an insatiable appetite for everything from houses to TV sets, and the money to buy them -- the world's fastest-growing democracy appears to be in the early stages of a major bull market.
"It's not easy for US investors to trade on India's stock exchange as a registered foreign institutional investor (FII); most of us don't qualify for that status. The best way to get diversified exposure to the country's sizzling economy is through this fund.
"Among the handful of US funds that participate in the India market, IFN is among the top dividend payers and best long-term performers. The fund carries a rich yield of 7.2% (based on $4.89 in payouts over the past 12
months) and has produced total returns of an astounding 54% a year on average since 2002.
"Fueled by India's rapidly growing economy, this fund's best-performing years may still be ahead of it. And with the shares now trading at a 4% discount to the fund's actual portfolio value, now could be a great time to scoop up some."
Before the bell: Futures point to lower start ahead of consumer confidence data
Warren Buffett, tells us more!
Oil has dropped $13, so gasoline should drop 30 cents, Americans hope
Reader Comments (Page 1 of 1)
1-02-2008 @ 2:42PM
krishnan said...
WIll India be able to sustain its bullish sentiments when foreign capital can grow cold as has been thecase since the financial sector collapse in US and its effects on Europe.
1-03-2008 @ 5:45PM
TH Williams said...
Thanks for another interesting column, Steve. The India Fund is a great alternative to playing the ADR's. The huge volume of foreign investment in India may be reduced somewhat in 2008 but it could take Indian firms quite some time to absorb the foreign funds already solidly in place!
http://thwphotos.blogspot.com/2008/01/why-invest-in-india-fund.html
1-27-2008 @ 4:27AM
sushil said...
best stocks for 2008 are Reliance Ind,Tata Steel,ACC,ONGC,Gail,Maruti,ICICI Bank,Ador Wellding,India Glycols Limited,Lok housing,BSEL INFand Assian Tiles.
3-26-2008 @ 2:17PM
David Hepworth said...
After five years of unprecedented growth, one wonders if the Indian stock market is ready for a breather. Lehman Brothers feels that with the right reforms, India could continue to have a 10% annual growth rate. More analysis is available at www.indiafund.net
3-26-2008 @ 2:20PM
David Hepworth said...
That url is http://www.indiafund.net