The Bombay stock exchange breifly crossed 20,000 twice before closing below 20,000. Is 20,000 here to stay or are we headed in for a wild ride and headed back to 18,000? Noone can tell. For now, I have unloaded my India funds and taken some profits. I will get back in at dips. However they maybe a while coming if the current pace continues. It took only a few weeks for the massive gains.
Along with India, China has also posted spectacular gains. Thanks in part to India (INP) and China(FXI), my mimf2007 contest portfolio is up more than 50% for the year.
Recently I ran across an interesting new ETF – FNI – First Trust Chindia – exposure to both India and China in the same fund – that’s nice. The only problem with this fund is that it invests in ADRs, not directly in the market. The problem with that is that there are not that many Indian ADRs to select from so the fund basically invests in all of them. I don’t know what the case for Chinese ADRs is, however. FNI has done well since it’s inception this year (obviously) but ADR premiums and discounts swing wildly and make for too much volatility. Inspite of that I might consider a position in FNI with some of the proceeds from my IFN and INP sale to gain some China exposure.