Consider initiating positions in the International EFT
India has been running large current account deficit. Current account deficit simply means that imports have been exceeding exports. A big problem has been heavy imports of gold. The government is beginning to succeed in curbing the imports but there is still a long way to go.
Because India runs current account deficit, it is susceptible to foreign fund outflows.
Foreign fund flows are also heavily influenced by the policies of the Federal Reserve in the U. S. Fund outflows caused the currency rupee to plunge recently.
The Reserve Bank of India has a new governor who announced a surprise rate increase; rupee has partially recovered. India is heading towards a general election. Election results may prove to be a catalyst for a move up in Indian stocks.
India remains a Strong Buy in the medium-term and the long-term.
At this time, Malaysia is our most favorite emerging market.
The growth has picked up since the election. The forecast for GDP growth is 4.5% in 2013. Current account deterioration may pose some problems.
Inflation remains under control and is expected to be at 2.2% for 2013.
Malaysia remains Strong Buy in the medium-term and Buy in the long-term.