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Market Round Up: What’s it all about India 👳 – Machiavellian trade sanctions 😎

by | 11 Sep, 2018

 

1. What’s it all about India?

At a time when investors are suffering from Emerging Market (EM) heebie jeebies, and China hogs the limelight in terms of how, when and if the trade war with the U.S. will impact its economy, perhaps now is the time to take another look at India. After all, its economy is far more domestically orientated and less dependent on external protectionist shenanigans, says Katherine Denham in City A.M. this morning.

Put it this way, India’s exposure with the U.S. is equivalent to just 3% of its total GDP – not enough for President Trump to have a hissy. Added to that, India is succeeding in cleaning up its bureaucratic past. Economic reforms have given companies confidence to do business; something that can be attributed to Prime Minister Narendra Modi’s business-centric policies and drive to promote foreign direct investment – even the Chinese are investing in India.

But if anyone wants to understand its underlying long term advantage, they need not look any further than demographics. China may be the most populous country on the planet. But India will have the biggest workforce on the planet – that means consumer spending power, not aged OAPs. In fact, the long term view is that China is heading for a similar eco-demographic stasis as Japan.

Related:  India’s economy set to overtake UK – knocking it from The Commonwealth’s top spot

 

 

2. Machiavellian trade sanctions 

Trade sanctions, or wars, are expected to remain headline news at least until the U.S. midterm elections in November as President Trump continues to deliver on his campaign promises and, perhaps, to detract the public from internal issues and talk of impeachment.

With worries that both Houses may turn blue, it seems evident that trade pressure, or friction, will remain. Trump is well aware that a global trade war would not be good for anyone – especially the U.S. economy exactly at the point when he needs it most – the 2020 election campaign. So, for now, trade tensions will remain as they serve a presidential purpose.

Related: Trump – Wall Street’s new best friend?

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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