BRICs = Bloody Ridiculous Investment Concepts

View this email online | Add newsletter@businessinsider.com to your address book
		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Wednesday, November 30, 2011 BRICs = Bloody Ridiculous Investment Concepts The term "BRIC"—coined by Goldman's Jim O'Neill 10 years ago to denote Brazil, Russia, India, and China—should really denote "Bloody ridiculous investment concept," writes Societe Generale strategist Albert Edwards in a note out this morning. That's because the BRICs—as well as emerging markets in general—are actually doing terrible right now; even worse than the struggling eurozone. He writes that the only reason investors are continually pumping money into BRIC countries is a deluded fantasy that investment returns are tantamount to growth. But this dream won't come true when they're paying out the nose to invest: It is no different from many of the other investment fantasies I have witnessed over the last 25 years only to see them end in severe disappointment. If growth does matter to investors, they should be worried that things seem to be slowing sharply in the BRIC universe, most especially in Brazil and India...The crucial driver investors are missing is the change in global liquidity as measured by growth in EM foreign exchange reserves. Confidence often ebbs as growth slows and EM economies are seeing a sharp drop in reserves and liquidity tightening. He says that this graph comparing BRIC equity markets to markets in the eurozone and around the world just proves his point: Read » Also On Money Game Today: Marc Faber Sees Signs Of A Major China Slowdown Everywhere He Looks STANDARD CHARTERED CHIEF STRATEGIST: The Euro Has Failed, It's Time For The Twouro Gold Hits $1745, Copper Jumps 6%, Mining Stocks Rally REVEALED: The One Region Of America Where The Economy Is Slowing Down Advertisement CHART OF THE DAY: American Airlines Has Taken A Big Round-Trip Flight CHART OF THE DAY: Guess Which Country Has The Highest Percentage Of Workers Employed By The Government CHART OF THE DAY: The #1 Performing Retail Stock This Year Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

If you believe this has been sent to you in error, please safely unsubscribe.