James Grant Bullish on India, Gold, and Gazprom

Mon, Jun 16, 2014 - 3:11pm

Move over China. The world’s next big growth story is India, said James Grant in a recent interview with Financial Sense Newshour:

“India…is one of the most wondrous stories around. You know a couple of weeks ago the Indian voters, about 550 million strong, voted to elect a certain Mr. Modi who campaigned on the platform of modernity and enterprise. So the Indians in record numbers tossed out the Congress party, which has been in charge of hindering enterprise for most of the years since 1947 and they've got a new guy who wants to encourage it. I think the Indians are inherently an enterprising people and this could be, and I think it is going to be, the world's great growth story over the next 5-10 years.”

The value-oriented and contrary-minded Grant said that he is also “very bullish on gold” and on what he referred to as perhaps the most detested asset in the stock market today: gold miners.

Source: StockCharts.com

What other areas is he looking at? Grant noted Russia and, more specifically, Gazprom as two possible bargains.

Source: StockCharts.com

With regards to larger Fed-induced risks to the stock market and financial system, Grant informed listeners of two scenarios he believes may play out: One, the Fed is too successful in finally bringing about inflation (and overshoots) or, two, fails to sustain financial assets at this level, which then leads to "even more muscular interventions by the monetary authorities in the face of a new bear market."

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