First Trust ISE Chindia (AMEX:FNI)

CAPS Rating: 3 out of 5

Exchange traded fund

Recs

1
Player Avatar ajacks1000 (< 20) Submitted: 1/6/2010 10:33:34 PM : Outperform Start Price: $21.95 FNI Score: -31.85

According to the IMF, China and India will grow 9% and 6.4% in 2010, respectively. Extremely effective stimulus programs have propped up domestic consumption in the face of drastically reduced exports.

Long-term problems facing Chindia include transitioning to sustainable medium-term growth, avoiding the corrosive effects of excessive credit, and preserving/expanding domestic demand once the stimulus programs are inevitably withdrawn.

For now, however, Chindia is as safe a bet as they come.

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