BIITS Replacing BRICs as Emerging Markets Not a Blanket Buy - Bloomberg

BIITS Replacing BRICs as Emerging Markets Not a Blanket Buy - Bloomberg:



"Investors in these markets are becoming more discerning about where they put their money, shying away from countries such as Brazil (IBOV), India (SENSEX), Indonesia, Turkey and South Africa. Behind the discrimination is a new-found focus on current-account deficits and structural weaknesses exposed by the likelihood of less stimulus from the Federal Reserve and cooling demand in China, according to economists from HSBC Holdings Plc, JPMorgan Chase & Co. and International Strategy & Investment Group LLC.
That’s a break from the past four years, when emerging markets mainly moved in tandem, seen as either a blanket buy or sell, with little regard to their individual circumstances. Such a mindset was epitomized by the popularity of the BRIC acronym coined for Brazil, Russia, India and China to reflect their potential as future economic powerhouses.
“Investors will be far more choosy among emerging markets than they’ve been in the past,” said Donald Straszheim, head of China research at New York-based ISI. “There will be a natural inclination to seek out the ones that are the best positioned.”"

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