Emerging Market Investors Need to Think Beyond Investing in the BRICs (II)
Arif Naqvi, the CEO of the Abraaj Group which invest in the emerging markets of Asia, Africa, Latin America and the Middle East, has written a great piece (It’s Time for Emerging Markets Investors to Think Outside the BRIC) for Institutional Investor that gives the following reasons why investors need to look beyond BRIC countries:
- Brazil’s budgetary and political issues as it gets ready for the World Cup and the Olympics.
- Russia’s annexation of the Crimea, subsequent sanctions and the potential impact on oil and gas exports.
- India’s “suffocating bureaucracy and glacial decision making” that plaques the Indian economy.
- China’s structural economy and concerns about shadow banking.
However and move beyond the BRIC countries, Naqvi sees opportunities in a wide range of African, Asian, Latin American and Middle East markets and especially in countries with increasing populations of young, urban consumers with rising incomes. He also cited what he calls, the “sturdy seven:”
- Health Care
- Financial Services
- Consumer Products
- Retail Operations
To read the whole article, It’s Time for Emerging Markets Investors to Think Outside the BRIC, go to the website of Institutional Investor.
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- Why Emerging Market Refrigerators Contain Cold Hard Economic Data (II)
- China Still Leads the BRICs in the Global Competitiveness Report
- Pick Stocks, Not Countries, in Emerging Markets (FE Trustnet)
- Emerging Markets in the East Converging With Developed Markets in the West (Create Research)
- Key Findings: Credit Suisse Emerging Markets Consumer Survey
- Margetts’ Ricketts: Low Oil Prices Mean Asia and Emerging Market Funds Can Keep Rallying (FE Trustnet)
- Mark Mobius’s Emerging Markets Outlook (WSJ)