The Breakdown of the BRICs – Bloomberg Businessweek 07-12-13

Salient to Investors:

In Q1 2013, BRIC bonds, currencies, and stocks fell together for the first time since 2006.

Since 2003, the MSCI BRIC Index has returned 227 percent, but is down 17 percent in 2013 and trailing the S&P 500 by the most since 1998. The MSCI BRIC Index trades at 1.2 times net assets, a 36 percent discount to the MSCI All-Country World Index.

BRICs accounted for 62 percent of global growth in 2012 versus 11 percent a decade ago.

EPFR said from 2005 through 2012, investors put $52 billion into BRIC mutual funds, and in 2013 have withdrawn $13.9 billion.

Ruchir Sharma at Morgan Stanley Investment Mgmt said every decade has a theme that captures investors’ imagination: gold in the 1970s, Japan in the 1980s, tech in the 1990s, and BRICs in the 2000s, which has basically run its course.

Olivier Blanchard  at the IMF said the BRICs are beginning to run into speed bumps.

Read the full article at  http://www.businessweek.com/articles/2013-07-12/the-breakdown-of-the-brics

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