While useful where there are common themes and policy dynamics, acronyms should never be used to formulate investment strategies, warns Charlemagne Capital's Julian Mayo.
The phrase ‘emerging markets’ encompasses so much of the world that generalisations are almost inevitably wrong. The temptation, therefore, is to lump together countries which have common characteristics. One is sheer size: the BRICs (Brazil, Russia, India and China) account for over 40% of the seven billion people living on this planet and more than a quarter of global GDP, when adjusted for price levels in different countries. The thinking behind the acronym was that the group would co-ordinate policy to enable sustainable economic development. Some have claimed South Africa should ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
