Should BRIC Stocks Rally, Play the ETFs
BRIC, BRIC, BRIC!!! Mark Mobius believes stocks in Brazil, Russia, India and China are likely to rise by 30 to 40% within three to four years as higher economic growth and lower government debt spurs corporate earnings. Super, so how can you play it?
You can buy the stocks or just go the ETF route with one of the following choices: iShares MSCI BRIC Index Fund (ETF) (NYSE:BKF), Claymore/BNY Mellon BRIC (ETF) (NYSE:EEB) or SPDR S&P BRIC 40 (ETF) (NYSE:BIK).
(Bloomberg/theStockMasters.com) “BRIC countries are really at the top” of our favorite holdings, Mobius said in an interview in Istanbul today. “You can see BRIC countries have been best performing….while a sudden violent correction is likely in a bull market, investors should be ready to buy,” he told reporters.
Mobius thinks that while developed economies may contract 4% this year, EMs as a whole may avoid a contraction with zero change in GDP.
Considered to be one of the leaders in the industry, as he has been involved in these markets (EMs) for over 40 years, Mobius is of the opinion that the biggest growth areas in emerging markets are in the consumer and commodity industries, with China and Brazil offering among the cheapest stocks worldwide.
Fellow Masters, get the BRIC train with the following ETFs that play those nations without stock picking, just go for the sector:
| Name▲▼ | Symbol▲▼ | Last price▲▼ | Mkt cap▲▼ | Avg vol▲▼ | 52wk high▲▼ | 52wk low▲▼ | |
|
BKF | 45.75 | 759.73M | 282,000.00 | 47.72 | 18.5 | |
| Claymore/BNY Mellon... | EEB | 42.29 | 1.01B | 576,000.00 | 44.03 | 17.6 | |
| SPDR S&P BRIC 40 (ETF) | BIK | 25.44 | 423.48M | 217,000.00 | 26.46 | 10.76
|
SOURCE: http://thestockmasters.com/node/1843
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