Is this a good time to change the weightage of BRIC (Brazil, Russia, India and China) stocks? Not sure if this is the right thing to do, but between China and India - I feel more and more comfortable with increasing the exposure to India at the expense of China. The reasons for this are:
- China's stock market seems to be murkier and there is a possibility of stock market coming down after Olympics.
- India's market has come down 25% from its highs, and the average P/E of the broad market is very reasonable at around 18 with still lot of growth.
I have slightly lightened my exposure to China and added more to India. If you have equally weigted portfolio to BRIC, I would suggest to consider weightage change to something like:
- Brazil - 25%
- Russia - 25%
- India - 30%
- China - 20%
I could be really wrong here, but taking my chances with slight changes.
3 comments:
so how do we play the bric.. add MFunds of individual stocks ?
It is upto you on how to get the exposure to BRIC. I have added a combination of mutual funds, closed end funds and some select stocks. Most of the funds/stocks that I am invested have been mentioned in posts for each of the countries except Brazil.
For Brazil, I have FLATX, LDF and SBS. FLATX and LDF have exposure to the whole Latin America, with Brazil constituting more than 50%.
Maverick,
I think with the cost of oil, the cost of transport of goods from china/india to US will slowdown. I do not think the jobs will come back to US, but atleast the winner in all of this will be Mexico as a near shore destination. ompanies will take another look at Mexico for manufacturing and hence i advocate lowering India/China a bit and adding Mexico to the portfolio.
Thoughts?
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