Indian investors: hold US and China, not either/or — SkimNews
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- Indian equities have faced bouts of volatility for months, driving investors to seek stability and growth in overseas markets like the US and China
- Viram Shah, CEO of Vested Finance, argues US and China are not an either/or choice — they are "two very different markets" doing different things right now
- The S&P 500 trades at about 22 times expected earnings, with a few giant tech companies now making up almost one-third of the index, raising concentration concerns
- China's market trades at roughly 11-13 times expected earnings — about half the US valuation — but carries policy risk, geopolitical tensions, a weak property sector, and foreign capital that has not returned
- Shah recommends holding both because they "don't always move together"; for US access he points to S&P 500 or total-market ETFs (plus equal-weight options), while for China he recommends US-listed broad-China funds covering mainland, Hong Kong, and US-listed shares
- Shah's allocation guidance: 15-25% global for beginners, 30-35% for most investors, up to 50% for aggressive profiles, with rare cases of 100% global and 0% domestic allocation
Why it matters: Indian investors weighing overseas exposure get a concrete playbook from Vested Finance: the S&P 500 at ~22x expected earnings is nearly twice China's ~11-13x multiple, but buying "the US market" today means concentrating in tech giants that make up roughly a third of the index. Shah's recommended 30-35% global allocation gives retail investors a specific starting benchmark they can act on immediately.
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