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Ludicrous to invest in US, Europe over India: Jerome Booth

Thursday, October 06, 2011

Developed countries are risky gambles, says Jerome Booth of Ashmore Investments. In the current situation, he advices institutional and retail investors to stay away from the developed world because all he sees there is volatility. “I don’t think any investor can put 90% of their money in Western Europe and United States and ......
Developed countries are risky gambles, says Jerome Booth of Ashmore Investments. In the current situation, he advices institutional and retail investors to stay away from the developed world because all he sees there is volatility. “I don’t think any investor can put 90% of their money in Western Europe and United States and credibly put up their hands say I am being prudent; they can’t because they are taking a gamble,” he said in an exclusive interview to CNBC-TV18’s managing editor Udayan Mukherjee.

Booth goes on to say that the October- December quarter is probably the best opportunity for the next five-ten years to invest in emerging markets. “If you want value, if you have got reasonably long-term liabilities and you can bear a bit of volatility, the answer is to invest India or invest in other emerging markets now,” he said.

According to Booth, the prudent thing right now is to get out of investments in the US and Europe. “If you do have anything in those countries, you have got to be paid an enormous amount by holding that. Don’t ever think of holding something in the US and Europe until you are safe.” He adds that nobody should be invested in these places thinking that is safe or safer than India. “It’s ludicrous to think that’s the case,” he says.
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