Global Macro Investing in the BRIC's
Brazil, Russia, India, and China are collectively known as the BRIC's. The paper in 2003 by Jim Oneil entitled The Path to 2050 brought the BRIC's to the forefront of emerging market investors. The idea is that by the year 2050 the BRIC nations will be as large and powerful if not more then existing super powers. Based on economic and demographic forces the paper might be right.
The basic thesis is that now that the economies of Brazil, Russia, India, and China have embraced capitalism in one form or another that by way of their vast populations and natural resources that they would become the growth drivers of the next 50 years. While we are obviously not there yet the argument can be made that for the most part we are well on the way.
The first letter in the acronym is B and it stands for Brazil. One of the largest non OPEC oil nations Brazil is also the home to many different industries. They have a large and proven banking system as well as airlines and manufacturing. But the two biggest drivers for the next several years will likely be the growing education of its population and the huge energy supplies that Brazil has.
Russia is probably the biggest wildcard in this group as they are still trying to figure out how to fully embrace capitalism. Russia has solid hard working people, with many being very educated and competent engineers, computer programmers, etc. Their remaining major issue is that of their leadership. With a leader who is an ex KBG agent things run but do not always run well. If the leadership can figure a few things out then Russia will be able to become very strong in the coming years.
India has one of the largest populations in the world and has a large educated populations that speaks English. Because of this they are the kings of outsourcing. Have you ever called up customer service and gotten an Indian for Dell, Apple, Etc? Due to their educated population they are also quickly becoming legitimate leaders in technology. After having been laggards in the tech space the last ten years has seen India become a major player in the global markets.
The last country on the BRIC list is not last because of potential but instead just for a catchy acronym. In fact if China can manage its growth right it may become the largest economy on earth over the next forty years. China has the people and is rapidly gaining the technological know how to do almost whatever it wants. The only caution is that government does not blow out the flame, but that is looking like a lesser and lesser problem. These nations have loads of potential for not only their citizens but also for global macro investors. - 16931
The basic thesis is that now that the economies of Brazil, Russia, India, and China have embraced capitalism in one form or another that by way of their vast populations and natural resources that they would become the growth drivers of the next 50 years. While we are obviously not there yet the argument can be made that for the most part we are well on the way.
The first letter in the acronym is B and it stands for Brazil. One of the largest non OPEC oil nations Brazil is also the home to many different industries. They have a large and proven banking system as well as airlines and manufacturing. But the two biggest drivers for the next several years will likely be the growing education of its population and the huge energy supplies that Brazil has.
Russia is probably the biggest wildcard in this group as they are still trying to figure out how to fully embrace capitalism. Russia has solid hard working people, with many being very educated and competent engineers, computer programmers, etc. Their remaining major issue is that of their leadership. With a leader who is an ex KBG agent things run but do not always run well. If the leadership can figure a few things out then Russia will be able to become very strong in the coming years.
India has one of the largest populations in the world and has a large educated populations that speaks English. Because of this they are the kings of outsourcing. Have you ever called up customer service and gotten an Indian for Dell, Apple, Etc? Due to their educated population they are also quickly becoming legitimate leaders in technology. After having been laggards in the tech space the last ten years has seen India become a major player in the global markets.
The last country on the BRIC list is not last because of potential but instead just for a catchy acronym. In fact if China can manage its growth right it may become the largest economy on earth over the next forty years. China has the people and is rapidly gaining the technological know how to do almost whatever it wants. The only caution is that government does not blow out the flame, but that is looking like a lesser and lesser problem. These nations have loads of potential for not only their citizens but also for global macro investors. - 16931
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posted by Edgar at
00:21
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