India stands tall

Global Market Performance Over Three Years

A recent chart from Vlad Bastion Research reveals the three-year returns on different countries’ markets from August 2021 to August 2023. This data gives us a clear view of how various countries have performed during this period. The best-performing countries are Turkey, Argentina, Peru, and Greece, with India securing the fifth spot. This performance showcases the relative strength of these markets amidst global economic conditions.

Currency Impact on Returns

While Turkey, Argentina, and Peru have shown strong performance, it’s essential to consider the impact of their currencies. These countries may have experienced significant currency devaluation, which could affect their returns in dollar terms. If the chart normalizes these returns to dollars, then the three-year returns indeed reflect their true performance. India’s 21% return is particularly impressive given its size and emerging market status.

Struggles of Other Markets

Interestingly, only a small percentage of the countries tracked are showing positive returns. China has performed the worst with a -43% return, followed by Hong Kong at -42%, and Vietnam at -41%. Brazil, another key emerging market, is at -27%. Other countries like the Philippines and South Africa are also in the red. Even many developed nations are showing returns between zero and -10%, with only a few smaller countries like Ireland, Spain, and Denmark being mildly in the green.

India’s Strong Performance

India’s strong performance stands out, especially when compared to other BRICS nations, which are struggling with negative returns. This achievement highlights the resilience and growth potential of India’s market. Despite the challenges, India has shown remarkable strength and promise in the emerging market space. This is a testament to the country’s economic policies and growth trajectory.

Retail Investment and Market Growth

There has been some skepticism regarding India’s growth, with some attributing it to retail investors’ mindless money inflow and a lack of foreign institutional investors (FII) engagement. However, the data suggests that something positive is happening in the country. The markets are reflecting this underlying strength, and it is essential not to belittle this achievement. The strong market performance is a clear indicator of India’s growing economic clout.

A Decade of Opportunity

Living in this decade of opportunity in India feels fortunate. The country’s position as one of the top-performing ETFs globally, coupled with its strong GDP growth, makes it an exciting time for investors. This period presents a phenomenal opportunity to capitalize on India’s growth story. The long-term growth prospects look promising, and there is no need for despair.

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