India has extremely low debt levels, incredible demographics, low wages, and a beaten down currency, stock market and bond market.
The major issue investing in India is political risk. Will their leaders do the right thing in terms of opening up economic growth within the country?
The United States has extremely high debt levels, horrible demographics, the least competitive wages in the world and a massively overvalued currency, stock market and bond market.
In the United States there is no political uncertainy. We know that the political leaders will do the absolute worst possible thing for the country at every possible opportunity.
If you were an investor looking to make a long term (5 to 10 year) investment (currency, stocks, bonds) in one of these countries, which seems like the best risk/reward scenario?
More from Jim Grant after his recent visit to India: