I completed my cash draw down on Monday when I added to my position in two India ETFs.
I picked India as for the second part of my attempt to make some investments at what appear to be attractive levels based on my views that:
1. the Indian economy has good long term growth prospects driven by a combination of demographics, deregulation, improving infrastructure and the rapid expansion of a skilled, educated and affluent middle class ;
2. there is considerable scope for interest rate cuts and other government measures to support or stimulate the market;
3. the Indian market has lagged many other markets in bouncing off its recent lows.
I initially placed an order for units in the Lyxor India ETF (stock code: 2810) which I already hold before remembering that the iShares Sensex India ETF is also listed in Hong Kong now (stock code: 2836). As the latter is larger, more liquid and has lower fees I attempted to switch my order from the Lyxor fund to the iShares fund and ended up with some of each. This is sub-optimal but is unlikely to do may any real harm.
I have now reduced my cash position to the equivalent of about 2.5 years living expenses and accrued tax liability.