Raja -

There's nothing like a little extra insurance to sleep soundly at night.

Best is to distribute your holdings to two or three different international custodial arrangements. Real estate in undervalued developing locations might also be good. However when I hear that apartments in the center of Saigon are selling for a quarter of a million USD (my barber told me), then maybe those aren't bargains any more (??).

If I had relatives in Mumbai for instance, I'd look seriously into finding an opportune market pullback to buy a condo in some good location there for the ten year investment term, but I don't know if that market is now severely overbought - and actually I suspect it might very well be so! Maybe it will stay chronically overbought for the next decade, defying everyone's better judgement to buy in. Who knows? You have to study it hard, and then use your common sense and your instinct as to when to commit.

But you see what I'm saying - a condo or house in a principal city in India with great growth fundamentals might be as good as gold in terms of diversifying your assets to hedge inflation. Putting your investment in the path of very strong growth? Personally, I don't think even severe global credit problems will slow India growth down for more than a year or two now. They will find a way to maintain 8% annual GDP growth regardless.

Of course, if you believe in devastating global deflation - then all bets are off and it's best to just hide under a desk somewhere and wait until you hear the last bricks and plaster have stopped crashing down onto your desktop. :rolleyes: