India Gets Knocked Out
I have a few friends that live in India and follow the Indian economy pretty closely. One of my relatives also owned the India Fund (IFN). IFN is a close ended mutual fund.
One ugly chart the past couple of weeks. One of my friends rode this from $30 to $50. Luckily he got out. The downside volume in May is troubling. Also see EEM.
My 2 cents, IFN & TIE along with a few other high fliers look like charts from March of 2000. I will never forget when my macroeconomics professor said, "rich people love bear markets."
posted by Big Ben at Monday, May 22, 2006
2 Comments:
I have no idea what is fundamentally going on in India. I know that the Indian central bank has been raising interest rates for some time. A lot of the ADR action and volatility has to do with the current exchange rate between India and the US. I owned IBN from August 2005 until March 2006.
"rich people love bear markets."
Could you elaborate on the above statement? Thx.
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