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Redefining Emerging Markets And Growth Market Investment Opportunities

April, 17 2012



Eight countries currently satisfy this criterion: each of the BRIC countries (Brazil, Russia, India and China), as well as the four largest “Next 11” (N-11) countries: Mexico, Korea, Turkey and Indonesia. These are the economies that are most likely to experience rising productivity coupled with favorable demographics and, therefore, a faster growth rate than the world average going forward.

While the acronym BRIC [the new world which would form Brazil, Russia, India and China] celebrates its ten years of existence, the weight of these four countries in worldwide economy passed from 10 % in 2002 to 25 % today. All the emergent said countries represent, as for him, 50 % worldwide economies. However, the strategical solidity of these countries isn’t reflected in the promotion, and even less in the stability of the prices of their active financiers. These last are still relegated by the investors to the status of speculative investment.

The stock markets of the emergent countries, which too represent 20 % worldwide capitalisation, show similar characteristics. Their movements answer more often external macroeconomic parameters or perception of political risks, than the intrinsic promotion of societies. How to explain otherwise than the medium promotions in Moscow are only of six times the benefits of societies, near the half of the medium promotion of the grant of Athens?

The helping time, the fear of faults passed by the emergent countries should become blurred to the advantage of the recognition of their sustainable growth and supported. What should naturally drive to a readjustment of the wallets of investment. And in the revaluation of all the assets of these countries.