Nov. 5 (Bloomberg) -- For all the concern about stock-market bubbles in Brazil, Russia, India, China, the biggest emerging markets still may have more promise than anything in the developed world.
The simple math of comparing the value of companies with their countries' combined gross domestic product shows the so- called BRIC markets total $1.71 trillion, or 25 percent of their GDP. U.S. equities available for trading, by contrast, are worth $13.98 trillion, or about the same as comparable GDP, according to data compiled by Morgan Stanley and Bloomberg. Stocks in all industrialized nations account for 81 percent of GDP.
That helps explain why the BRICs are ``in the early stages of the rally,'' said Jeffrey Kleintop, who helps oversee $163 billion as chief market strategist at LPL Financial Services in Boston and is adding to his ``overweight'' in developing-nation stocks by selling shares in industrialized countries. ``You're seeing a lot of areas run up, but it's not gotten to the point where it is representative of the overall economy.''
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
2 comments:
I really appreciate all of your effort on this blog. It helps me stay connected with your line of reasoning and stay the course between newsletters. Are you going to start recomending individual stocks in BRIC? I have had a good run in EEB.
Are you at all concerned that this rally seems quite narrow (fewer stocks participating upside, (Google, Apple etc.) while the indicies are ever more volatile?
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