Recall walking through the ubiquitous chain drug store near you to see the cologne shelves where the knock-off brands advertised “If you like Paco Rabanne, you’ll love ‘Paul Raven’ cologne.” Basically it smells the same but is a lot cheaper.
Brazil, Russia, India and China – collectively the BRIC countries – have under-performed the United States for the past couple of years. An interesting reversal of globalization appears to be developing and it will prove to be quite interesting to witness these four nations as they face a new challenge: how to become a more self-sustaining economy.
Indian telecom companies may have bottomed out after India’s botched spectrum auction, and with smartphone sales in emerging markets set to jump next year, and India (EPI, quote) touted as the top BRIC market for 2013, investors with a long term horizon may want to start doing their due diligence now.
The ruling Congress party staged a huge rally over the weekend to defend recent reforms and build support for more foreign investment in retail and insurance. Just last week the Premier, Manmohan Singh, replaced members in his cabinet to reach the younger electorate and restore credibility to a government that has been racked by widespread corruption. Elections in India are held every five years and are scheduled next for 2014.
Questionable euphoria in U.S. stock markets on Friday aided the BRICS emerging markets to aggressively about face and claim significant gains.
Stock exchanges in both developed and emerging markets moved higher Friday thanks to U.S. Federal Reserve Chairman Ben Bernanke’s speech at Jackson Hole, Wyoming.