From the WSJ: Stock markets in Brazil, Russia, India and
China have tumbled of late on signs of slowing economic growth. That is presenting an opportunity for
investors to buy what others are fleeing. The BRIC markets now look cheap based
on their corporate profits and dividends. And despite slowing growth, their
long-term prospects remain bright.
The key is to choose the best way to buy in. BRIC mutual
funds pose problems, as do other stock funds that track small baskets of
emerging markets with names like "Next 11" and "Civets."
Investors should look instead to broader emerging-markets funds that can buy
wherever the bargains appear.
The BRICs got their name from a 2001 paper by Goldman Sachs
GS -0.29% economist Jim O'Neill, now head of the firm's asset-management
division, who cited those countries' potential for rapid economic growth. As
predicted, their economies have expanded much faster than developed markets
like the U.S. The returns, however, have been less pleasing….
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