Q: I know you are not very gung-ho on emerging markets as a whole, but what is your view on India in specific? Would you have a target for the Nifty that you can share with us? The domestic cue that we are working with would be the state assembly elections and the national elections later next year. Would that change your opinion or maybe help your view towards India in specific?
Marc Faber : We are down in India from the early 2008 high by 40 percent in US dollar terms, in other words adjusted for the currency movements. We are not down 40 percent in rupee terms, but in dollar terms. I think that people pay too much attention to GDP growth figure etc and should rather focus more on individual companies. The problem in American economies is that a lot of money has flowed in and it has boosted the valuation of essentially very liquid stocks or big market cap stocks whereas smaller cap stocks are reasonably priced. So I think there is an opportunity in India, whether the index will go up a lot or not that I do not know, but for the active investor that does not buy the index, I see an opportunity. - in moneycontrol
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