Returns Handicap Is Driving Selloff By Foreign Investors

India is handicapped by about 5% when compared to US returns, by two factors

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Last week, Bertie attended a pre-budget gathering of business and market types. The overwhelming reason for attending the event was that it was being held at Fat Cats Club, which is walking distance from Bertie's office. As the chief economist of a business house went through the long budget wish list, Bertie was reminded of a scene from the movie Bruce Almighty, starring Jim Carrey. In the movie, Bruce has been bestowed with divine powers to grant people's wishes. An overwhelmed Bruce approves everyone's prayers in one go with disastrous results like all sports games ending in ties and millions of people winning the lottery that ends up causing riots. For a brief moment, Bertie thought of making a meme about this but thankfully, his thoughts were interrupted by a tap on the shoulder by his old friend Mick.

Mick used to be an equity strategist who now oversees the asset allocation for a large US pension fund. "Hey Mick, good to see you in Mumbai my friend," said Bertie. Mick smiled. "Here to send some money our way?" The salesman in Bertie was instantly at it. "Not really," said Mick. "Here on a personal trip. Folks are getting old. Taking them back with me," he said.