AboutWarren Boroson Expertise Author of "Keys to Investing in Mutual Funds" (Barrons) and "Ultimate Mutual Fund Guide" (Probus). Columnist for Gannett News Service.
Experience Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD)about mutual funds and a newsletter, FundDigest.
Expert: Warren Boroson Date: 1/10/2008 Subject: Asia & India Equity Funds
Question Hi Warren,
What are your thoughts on Asian and Indian equity funds
in terms of suitability for a young investor in next 3-5 yrs.
Also how long do you think the subprime mortgauge crisis will last in US?(I heard W Buffet say 2 yrs on a youtube post), is it worth considering for young investors to withdraw from local US index funds and look to Asia and India equity funds.
Answer Dear Jim--
Everyone tells me that the Indian stocks are overpriced, but I've made a little money on them. In general, buying something that's a litle overpriced isn't terrible--it may stay overpriced, become more overpriced, or bounce back after a dip. I plan to hold onto my India fund for a long time. I also have some exposure to China via a fund--and can't bring myself to sell any, despite its inordinate profits!
In both cases, India and China, my exposure is pretty small.
As for sub-prime mortgages, I think the real-estate crisis will last two or three years. And maybe I'm being optimistic. I have a house I want to sell, and houses nearby, already on the market, aren't moving. Things will get a lot worse, I fear, because buyers are waiting and waiting for prices to nosedive. If anyone buys a house now, that person had better plan to remain there a while. Long enough for prices to stabilize and perhaps move up.
For heaven's sake, don't withdraw from US Index funds! The US will remain dominant for years, especially with a change of administrations. And big US companies in the indexes have plenty of exposure to foreign markets. Young investors should certainly ALSO have a healthy exposureto foreign markets, but remain with the US, too.
