It isn’t until we look at the bigger picture, though, that we realize Trump’s ascent is in line with a nationalistic wave that’s spreading across the globe, from Asia to Europe and beyond. As investors, it’s important that we familiarize ourselves with these global policymakers, thought leaders, mavericks and disruptors. Government policy, after all, is a precursor to change.
One global leader who seems to mirror certain aspects of Trump’s nationalist platform is Narendra Modi, current Prime Minister of India.
Narendra Modi’s 2014 campaign slogan, “Good times ahead,” is in many ways cut from the same idealistic cloth as “Make America Great Again.” Indeed, the similarities between Modi and Trump are numerous. Both men have made it their top goals to strengthen economic growth by deregulating key industries and taking a protectionist approach to manufacturing, reflected in their respective “Make in India” and “America First” policies. A former tea merchant, Modi has often been described as a Hindu nationalist, with alleged goals to replace secularism with Hinduism as the guiding principle of Indian government and society. Like Trump, he’s interested in “draining the swamp” of public corruption. To that end, Modi took an extreme measure in November, eliminating all 500 and 1,000 rupee banknotes—90 percent of the nation’s currency—one of the effects of which was a sharp decline in December’s gold demand.
The iShares MSCI India ETF (BATS:INDA) was trading at $28.81 per share on Thursday afternoon, up $0.16 (+0.56%). Year-to-date, INDA has gained 7.46%, versus a 1.75% rise in the benchmark S&P 500 index during the same period.
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About the Author: Frank Holmes
Frank Holmes is the CEO and chief investment officer of U.S. Global Investors. Mr. Holmes purchased a controlling interest in U.S. Global Investors in 1989 and became the firm’s chief investment officer in 1999. In 2006, Mr. Holmes was selected mining fund manager of the year by the Mining Journal, and in 2011 he was named a U.S. Metals and Mining “TopGun” by Brendan Wood International. He is also the co-author of The Goldwatcher: Demystifying Gold Investing. More than 30,000 subscribers follow his weekly commentary in the award-winning Investor Alert newsletter which is read in over 180 countries.
Under his guidance, the company’s mutual funds have received recognition from Lipper and Morningstar, two trusted independent financial authorities. In 2015, Mr. Holmes led the company into the exchange traded fund (ETF) business with the launch of the U.S. Global Jets ETF, which invests in the global airline sector.