Wednesday, May 23, 2012

3 Reasons You Shouldn't Give Up On The BRICs Just Yet


Investors fled the BRICs last year as Brazil, Russia, India, and China underperformed many of the major emerging markets, BusinessInsider writes.

UBS analyst Nicholas Smithie and his team believe BRIC's underperformance can be attributed to three key things:

A.     BRICs are high beta markets and are highly correlated with one another and other emerging markets and were hurt by the low-risk appetite environment after concerns emerged on Europe, China and the U.S. economy.
B.     High profile corporate corruption scandals like Sino-Forest in China and the 2G scam in India.
C.     BRICs have a larger share of energy companies 25 percent, versus 5 percent for non-BRIC nations, while the rest of the GEMs are more tech heavy at 20 percent, compared with 5 percent in BRICs.


You can’t stop now.  Read on: http://www.businessinsider.com/ubs-3-reasons-you-shouldnt-give-up-on-the-brics-just-yet-2012-5

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