GO
Loading...

China vs. India — Where to Invest Now: Strategists

Monday, 8 Nov 2010 | 12:27 PM ET

President Obama talked to India’s parliament Monday, stressing the importance of the relationship between the two countries. Obama is also expected to speak with Chinese president Hu Jintao at the APEC CEO Summit later this week. What is the better emerging market play for investors — China or India?

Mike Holland, chairman of Holland & Company and Jim Iuorio, director of TJM Institutional Services shared their best plays.

Obama: India Is Defining Partner
President Obama stressing the importance of the U.S. relationship with India. Deciding which market, India or China, is the best to invest in, with Mike Holland, Holland & Co. chairman, and Jim Iuorio, director of TJM Institutional Services.

China is going to surprise to the upside,” Holland told CNBC. “India’s very attractive too, but I’m closer to the investments in China and any surprise we get from the companies over there in the next year or two are going to be on the upside.”

Holland said at 14 times earnings, both Taiwan and China are on the “bargain table.” (Scroll down for his full picks.)

In the meantime, Iuorio said India is a democratic, demand-driven economy and also has a legal structure that the Western world is more accustomed to.

“For the short-term, it seems that China has these meteoric GDP rises whereas India’s a better play for the longer-term,” he said.

“If you believe that the Fed will continue throwing liquidity, it’s reasonable to assume that liquidity makes its way to different parts of the world," he explained. "Also, if you believe in a global recovery, India’s the way to go and there’s an ETF — EPI — that’s compromised of all Indian companies with 31 percent in industrial materials.”

In addition, Iuorio also suggested investing in Malaysia and Taiwan.

Holland Likes:

China Fund

SPDR S&P China

IShares MSCI-HK

IShare FTSE/Xinhua

Iuorio Likes:

Wisdom Tree India Earnings

Tata Motors

______________________________

Scorecard—What They Said:

  • Holland's Previous Appearance on CNBC (Oct. 27, 2010)
  • Iuorio's Previous Appearance on CNBC (Nov. 5, 2010)
  • ______________________________

More Market Intelligence:

______________________________

CNBC Data Pages:

______________________________
CNBC Slideshows:

______________________________
Disclosures:

No immediate information was available for Holland or Iuorio.

______________________________

Disclaimer

  Price   Change %Change
CHN
---
EPI
---
EWH
---
FLEX
---
GXC
---

Featured