Mark Matthews, MD, Julius Baer, says: “China is not a good market to invest for the long term and if you put $100 into India 30 years ago, it would be about $1,800 today, which is remarkable considering what the rupee has done over that period of time. $100 in China would be about $150 today. So, it has been a destroyer of capital. However, there are opportunities that come along in every market, including China, and I think this is one, firstly, because their economy is bottoming out and it is not only cheap, it is abnormally cheap. I think China will be about 20% to 30% higher between now and 12 months from now. But beyond that, I would not hold it.”
After how long have you come to India and what is the staggering change that you have felt?
Mark Matthews: It has been around two years since I was last in India and it is great to be back.
If I have one takeaway, I sense a major improvement in the attitude of people in general, but particularly young people. There is something abuzz.
There is entrepreneurship which was there before, but I just feel it has accelerated and it is very heartwarming to see because in many other parts of the world, after this big wave of inflation, young people are finding it really hard to get by. Here in India, I am sure that is the case as well with many people, but I do sense an energy, a willingness to try new things and it is very refreshing because you do not see that in many other parts of the world.