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Special Report: Hit the BRICs for a Global-Investing Double Play
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If you’re a global investor looking for global profits - including one
potential way to double your money - you need to "Hit the BRICs." Back in
2003, the Goldman Sachs Group Inc. (GS) - eager to push its clients toward emerging markets
investment - created the acronym "BRIC" to stand for Brazil, Russia, India and
China, the four emerging markets the investment bank’s strategists believed
would become a dominant part of the world economy in the years ahead.
What started as a marketing ploy is now a profit play that global investors
have to consider, since at least three of the four countries - Brazil, China
and India - feature sound economies with powerful growth rates, and stock markets with reasonable valuations.
In fact, China and India are two of the fastest-growing investable economies
on the planet, and have been transformed into global leaders in both the
manufacturing and service sectors. At the same time, Brazil and Russia each has
become a cornucopia of commodities, and are emerging as global leaders in the
white-hot global energy sector.
These newfound global strengths have provided all four of these countries
access to massive amounts of capital, a key element of the investing methodology
in both Money Morning and The Money Map
Report.
With foreign reserves of $1.68 trillion, China basically has all the capital
it needs for the development projects it has on the drawing board. India has
nearly $300 billion in foreign capital invested in its stock market; and that
virtually guarantees it will remain on global investors’ radar screens for the
foreseeable future.
After conducting this analysis, we decided to develop "The BRIC
Report," a periodic feature we’ll use to update you on both the
latest developments, and the latest profit plays, in each of the BRIC economies
and BRIC stock markets.
Building Profits, BRIC by BRIC
While the BRIC countries are by no means the world’s only attractive emerging
markets - from time to time, in fact, the BRIC markets may become overpriced or
their growth prospects may ebb - over the long haul, these markets remain strong
opportunities for investors, and should remain at the top of your list of profit
plays. Here are the four top factors why this is true.
- Population: The four BRIC markets are the largest
economies and have some of the largest populations among emerging-market
countries (which don’t include such already-emerged East Asian markets as Japan
and South Korea). Companies from BRIC countries have large-and-competitive
domestic markets, meaning they’re already globally competitive when they venture
abroad.
- Rapid Growth: China and India have two of the
fastest growth rates in the world, and that looks likely to continue. Other
rapidly growing countries are much smaller - and more risky.
- Natural Resources: While China and India are the
major poles of global manufacturing and service growth, the two other BRICs -
Brazil and Russia - are cornucopia of commodities and energy, which in the past
have been inadequately exploited. The escalating energy and commodity prices of
the last five years have brought rapid growth to both countries, enabling them
to develop active consumer sectors with a multitude of investable
companies.
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