Investors No Longer Interested In BRIC

The largest developing nations for the first time have the worst market opportunities as optimism for stronger growth shifts to the U.S. and Europe, according to a Bloomberg Global Poll.

India fared the poorest, followed by Brazil, Russia and China, a worldwide poll of investors, analysts and traders who are Bloomberg subscribers showed this week. The number of respondents who see the European Union as one of the two best opportunities rose to 34 percent, its best showing in the poll dating to 2009, with the U.S. at 51 percent.

Prospects of diminished global liquidity from cuts in U.S. Federal Reserve bond buying have sparked the biggest emerging-market currency selloff in five years, with the Indian rupee and Turkish lira hitting record lows. The rout spotlights challenges including credit overreliance in China and low investment in Brazil, part of the BRIC group with India and Russia.

“The BRICs will always be playing second fiddle to the developed economies,” said survey respondent Ben Kelly, an analyst at Louis Capital Markets in London. “The pro-growth monetary policy of the U.S. allowed emerging countries to thrive due to very low or negative real rates,” he said, referring to borrowing costs adjusted for inflation.

Bloomberg

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