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Time To Invest In Bric Nations for Stock Market Gains - Mike Swanson (08/14/09)

Last year there was a horrible stock market crash that took down stock markets all over the world and probably led you to wonder What is the Dow Jones Stock Exchange about and will it survive? This year though there has been a nice rebound since March. Most people don't know it, but markets of the so called BRIC nations have been going up more than the stock market in the United States.

Take the first four letters of Brazil, Russia, India, and China and you will get the word BRIC. You are going to hear this word more and more, because these four countries are going to experience the most economic growth going forward. That is why the stocks of these countries have gone up so fast off of the recent low in the stock market.

An analyst at Goldman Sachs first put the letters together BRIC in 2001. He said that the BRIC countries would see their economies grow to become bigger than the biggest world economies as they are right now. He said buy investments in those countries to get in on the growth.

Investing is like real estate it is all about location and buying at the right time. Japan for instance right now is the second biggest global economy. But in 2050 it will slip to number eight in the world rankings and India will go to third place. India is number twelve now. It makes more sense to own stocks in India than it does to own stocks in Japan.

The United States is even expected to slip from its current number one spot to number two by 2050. It will be passed by China, which has the most number of people living it in the world. China is already experiencing high economic growth and its stock market was among the best performing stock markets in the whole world over the past five years.

Brazil is also an incredibly attractive place to invest. While the economy of the US shrank over 5.5% in the first quarter of this year Brazil's GDP actually grew. It completely shook off the global financial crisis.

All of these bric nations are also linked to high commodity growth and the US of energy. The leaders of these countries recently met with the help of Russia to coordinate and work together in a high level economic summit last week. All eyes are on them, because they are the future.

If you live in the United States you have plenty of opportunities to invest in Brazil, Russia, India, or China with stock picks. There are mutual funds that specialize in each of these countries and some that invest in all of them. There are depository receipts that trade on the stock exchange and hold stock in individual companies from the BRIC nations. They just appear to be regular stocks to trade and they been the fastest rising stocks in the market in the past few months. Fortune favors the bold and those who understand the future and how to profit from it.


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Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

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