However, is this right strategy to have? Certainly not if one is confident that the current growth rate in India is just an aberration and days of higher growth rate of 7%-8% are only a matter of time. In that case, there could be no better to time to invest in Indian stocks than now we believe.

And our belief stems from a study that we have carried out based on historical data. You see, since the year 1992-93, there have been only six financial years (excluding FY13) where the economy has grown below 6%. And investments made during the end of these years have on average yielded returns of 19% over the next 12 months. Even from a three year perspective, returns have averaged in the region of 17%. Thus, as can be seen, a weak economy is not the time to avoid stocks. In fact, investments made at such times are likely to yield the best results over the medium to long term as most stocks are priced poorly given the weak economic environment. Therefore, smart investors who are able to take advantage of this opportunity are the ones that end up creating good deal of wealth for themselves.

Consequently, one's best chance at generating returns does not lie in heeding Mr Feldstein's advice. It instead lies in taking an exposure in Indian equities if one is confident of its long term growth story.