China has been a remarkable success story in the world of exchange traded funds (ETFs), and now India could very well be poised to have a similar run, reports Indymedia. Strategist George Zhibin Gu wonders why China still rules, despite the fact that labor in India costs about half as much. He says that India doesn’t have an effective manufacturing base, while China has built up a thorough business chain over the last 26 years.
However, India seems to be making up for lost time. They’ve got an inexpensive car in the works, which leaves it poised to surpass China in 2008 as the fastest-growing car market. China also can’t be discounted when it comes to their rising gross domestic product: in the first half of his year, the increase in consumer spending in both China and India combined contributed more to the global GDP growth than America’s increase did.
Why not just call a truce?
- PowerShares Gldn Dragon Halter USX China (PGJ), up 58.9% year-to-date
- SPDR S&P China (GXC)
- iShares FTSE/Xinhua China 25 Index (FXI), up 61.5% year-to-date
- iPath MSCI India ETN (INP)
- India Fund (IFN)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.