(Article from: CNN Money/BRIC Markets Left
in the Dust by Charles Riley
"In China, GDP growth could drop below 7.5% this year as the government seeks to implement structural reforms. Brazil, meanwhile, has been hit hard by political unrest, and the real has come under pressure. Russia's economy had a bad second quarter as investment slowed and export demand dried up." ------ BRIC Markets Left in the Dust
Today I read an article from CNN about the economic situations of BRIC countries. It claimed that BRIC countries might not be the best market to invest now. Accordind to the negative indexes in the following picture, the BRIC countries are having a hard tome developing their economics. (Brazil's Bovespa index, Russia's Micex, Mumbai's Sensex of India, and Shanghai Composite of China)
Political unrest and slowing economies have
sent investors fleeing the BRICS. (picture from CNN)
The speaker (Sean Darby, chief global
equity strategist at Jefferies) in the article mentioned that it is common to
see a country to slow down after rapid development. Investors are scared of the
outflow from the four countries recent months, some of them decided to give up
and transfer their money to other markets. It will be another disaster for the
four countries because they lose the hope they count on. At this moment, it
seems like it is safer to invest money in the other developing countries.
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