These Shares Are Up 63% Since January and Are STILL a “Buy”

Subscribers to my True Wealth letter are up 63% since January on my recommendation of the Market Vectors India Small-Cap Fund (SCIF).

What’s going on in India? And can the gains continue?

What’s going on is, India has elected a new leader, and investors are extremely excited – downright euphoric.

Can the gains continue? Usually when optimism gets this high, it’s time to start thinking about selling, not buying. However, you don’t make hundreds-of-percent profits by selling now. So…

[ad#Google Adsense 336×280-IA]I wanted to get the “boots on the ground” perspective in India right now, from someone I trust.

I contacted my good friend Rahul Saraogi…

He’s a hedge-fund manager based in India with an Ivy League education from the U.S.

Rahul literally wrote the book on investing in India…

It just came out.

It’s called Investing in India: A Value Investor’s Guide to the Biggest Untapped Opportunity in the World.

Rahul is extremely good at what he does… I invested in his hedge fund once, and pocketed triple-digit returns in the 14 months I owned it.

Here’s what Rahul is saying today:

Rahul: In my view, India is now in a secular [long-term] bull market. However, it is only at the first floor of a multi-storied skyscraper.

Steve: Wow. That’s a big statement – especially since I know you’re a contrarian investor at heart. But what about the big run already in stocks so far this year… doesn’t it feel a bit like a peak to you? Or can the market really digest this big move and then continue higher?

Rahul: In my opinion, the market will probably build into a broad-based run, as GDP growth picks up and as corporate earnings increase across the board in the next few years. That will probably culminate in a euphoric re-rating of the entire market.

Steve: What’s so special about Modi – the new leader?

Rahul: Everyone in India knows what needs to be done. Modi will get things into motion and will foster a culture of decision-making and action. He is infamous for getting all stakeholders into a room and not allowing them to leave until a decision is made. His track record in Gujarat shows that he likes to call a spade a spade and is extremely intolerant of indecision. India needs that today.

Rahul – a great contrarian investor – is actually bullish on India today.

I have explained to my subscribers that the upside potential for us is “hundreds of percent.”

Even after the great run this year… it looks like we might still have significant upside from here.

Watch your trailing stops, of course… But don’t bail out on India just because it has run up…

If Rahul is right – and he often is – there could be much more to come…

Good investing,

Steve

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Source: DailyWealth