Comments on: Concerns for the BRIC - Brazil and Russia - Part 1 http://www.moneyrelations.com/2008/01/08/concerns-for-the-bric-brazil-and-russia-part-1/ Investing for beginners Wed, 07 Jan 2009 00:15:51 +0000 http://wordpress.org/?v=2.6.2 By: moneyrelations http://www.moneyrelations.com/2008/01/08/concerns-for-the-bric-brazil-and-russia-part-1/#comment-1422 moneyrelations Wed, 09 Jan 2008 02:11:12 +0000 http://www.moneyrelations.com/2008/01/08/concerns-for-the-bric-brazil-and-russia-part-1/#comment-1422 @ Arohan Interesting comment about the backlash against immigration. I mean, I don't think xenophobia is specific to this generation. Would be interesting to see if there's a study on this... I totally concur about Brazil. Frankly, it's the only one of the 4 I'd touch now. @ Jean Costa And guess what <a href="http://www.reuters.com/article/companyNewsAndPR/idUSN1821878820071018">Buffett</a> has been buying... Thanks for dropping by, guys! @ Arohan

Interesting comment about the backlash against immigration. I mean, I don’t think xenophobia is specific to this generation. Would be interesting to see if there’s a study on this…

I totally concur about Brazil. Frankly, it’s the only one of the 4 I’d touch now.

@ Jean Costa

And guess what Buffett has been buying…

Thanks for dropping by, guys!

]]> By: Jean Costa http://www.moneyrelations.com/2008/01/08/concerns-for-the-bric-brazil-and-russia-part-1/#comment-1419 Jean Costa Tue, 08 Jan 2008 19:44:29 +0000 http://www.moneyrelations.com/2008/01/08/concerns-for-the-bric-brazil-and-russia-part-1/#comment-1419 It is interesting to note, that 2-3 years ago, For every 1 US Dollar, you would get close to 4.00 Reals. Now for every 1 US Dollar, you get 1.75 Reals. Reals is the Brazilian currency offcourse. It is interesting to note, that 2-3 years ago, For every 1 US Dollar, you would get close to 4.00 Reals. Now for every 1 US Dollar, you get 1.75 Reals.

Reals is the Brazilian currency offcourse.

]]> By: Arohan http://www.moneyrelations.com/2008/01/08/concerns-for-the-bric-brazil-and-russia-part-1/#comment-1418 Arohan Tue, 08 Jan 2008 16:40:09 +0000 http://www.moneyrelations.com/2008/01/08/concerns-for-the-bric-brazil-and-russia-part-1/#comment-1418 A large part of the allure of BRIC countries is the demographics. North America and Europe and Japan are very quickly ageing with low birth rates and recent backlash to immigration in some western countries will do nothing to help their long term economic potential. Countries like China, India and Brazil have young demographic which is at or very quickly reaching its most productive years. Couple this with ongoing economic reforms and you have a great formula for economic success I reserve my judgment on Russia though. It is true that there are pockets of opportunity and many have become fabulously wealthy but the country risk is too high and unless you know your way around and have friends in high places, generating great wealth in Russia is going to be difficult. Besides, didn't the average life expectancy in Russia drop like 10-20 years since perestroika? Of the BIC countries, the Chinese stocks are beyond the bubble territory and mainly due to the structure of the stock market there. If China ever decides to open up its stock market completely, then the over inflated stock prices will surely come down Indian stocks are also very expensive today and it is possible that some of the companies are able to maintain sufficient growth to justify these prices. There may still be some cheap stocks that one can buy in India but you have to look really deep to find these. I have highlighted one of these stocks on my blog: http://arohanvalue.blogspot.com/search/label/SLT Brazil valuation looks the most reasonable of the BRICs and I am still kicking myself for not pulling the trigger on the few companies I was looking at a few years ago. Nice topical article. A large part of the allure of BRIC countries is the demographics. North America and Europe and Japan are very quickly ageing with low birth rates and recent backlash to immigration in some western countries will do nothing to help their long term economic potential. Countries like China, India and Brazil have young demographic which is at or very quickly reaching its most productive years. Couple this with ongoing economic reforms and you have a great formula for economic success

I reserve my judgment on Russia though. It is true that there are pockets of opportunity and many have become fabulously wealthy but the country risk is too high and unless you know your way around and have friends in high places, generating great wealth in Russia is going to be difficult. Besides, didn’t the average life expectancy in Russia drop like 10-20 years since perestroika?

Of the BIC countries, the Chinese stocks are beyond the bubble territory and mainly due to the structure of the stock market there. If China ever decides to open up its stock market completely, then the over inflated stock prices will surely come down

Indian stocks are also very expensive today and it is possible that some of the companies are able to maintain sufficient growth to justify these prices. There may still be some cheap stocks that one can buy in India but you have to look really deep to find these. I have highlighted one of these stocks on my blog: http://arohanvalue.blogspot.com/search/label/SLT

Brazil valuation looks the most reasonable of the BRICs and I am still kicking myself for not pulling the trigger on the few companies I was looking at a few years ago.

Nice topical article.

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