All four countries have substantial differences and while they remain heavily tied to the U.S. and other big nations in terms of trade (with India and Russia receiving U.S. aid, too), there’s no way any of them want to rattle the saber by laying down the gauntlet. Not while they also hold almost one-third of U.S. Treasuries.
What they do have in their favor at the moment, though, is GDP growth…
An Emerging World Of Growth
China: 9%.
Russia: 8%.
India: 6.7%.
Brazil: 5%.
Those were the GDP growth totals for the BRIC nations in 2008, compared with the U.S. economy’s contraction of more than 6%. And even the BRIC’s current impressive pace is a slowdown from the red-hot growth seen before that.
What’s more, that growth isn’t artificially stimulated by government printing presses alone. The economies are growing in their own right.
This year, China and India are expected to grow by 7.2% and 6.2% respectively, with China accelerating to pre-global meltdown levels of 8% and 9% during the third and fourth quarter.
So with that, some investment options for you…
Investing In The BRICs
For the sake of diversity and ease of investment, I’m going to focus on ETFs here.
If you want a broad emerging market play, take a look at the iShares MSCI Emerging Markets ETF (NYSE: EEM).
For investments in the specific BRIC nations combined, consider these:
~ iShares MSCI BRIC (NYSE: BKF)
~ SPDR S&P BRIC 40 (NYSE:BIK)
And for investments in the specific BRIC nations individually, take a look at the following:
~ China: iShares FTSE/Xinhua China 25 Index (NYSE: FXI)
~ India: PowerShares India (NYSE:PIN) or WisdomTree India Earnings (NYSE: EPI)
~ Brazil: iShares MSCI Brazil Index (NYSE: EWZ)
~ Russia: Market Vectors Russia ETF (NYSE: RSX)
Best regards,
Martin Denholm
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