• 4 minutes Permian in for Prosperous and Bright Future
  • 7 minutes Amount of Oil Usage in the United States
  • 10 minutes America Could Go Fully Electric Right Now
  • 3 hours Something wicked this way comes
  • 13 hours Tesla Battery Day (announcements on technology)
  • 3 hours Kalifornistan, CO2, clueless politicians, climate hustle
  • 48 mins JP Morgan Christyan Malek, report this Summer .. . We are at beginning of oil Super Cycle and will see $190 bbl Brent by 2025. LOL
  • 11 hours Natural Gas Saves Southern California From Blackouts
  • 7 hours Why NG falling n crude up?
  • 2 hours .
  • 1 hour Famine, Economic Collapse of China on the Horizon?
  • 2 days US after 4 more years of Trump?
  • 1 day Ten Years of Plunging Solar Prices
  • 2 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
Wall Street’s Big Coronavirus Mistake

Wall Street’s Big Coronavirus Mistake

The coronavirus has wreaked havoc…

Will U.S. Elections Impact The Gold Rally?

Will U.S. Elections Impact The Gold Rally?

Gold prices have soared this…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

The Long View on Emerging Markets

I managed to catch a few comments on TV yesterday in the distinct northern accent of Jim O’Neil, the fabled analyst who invented the “BRIC” term, and who has been kicked upstairs to the chairman’s seat at Goldman Sachs International (GS) in London.

Jim thinks that it is still the early days for the space, and that these countries have another ten years of high growth ahead of them. As I have been pushing emerging markets since the inception of this letter, this is music to my ears. By 2018 the combined GDP of the BRIC’s, Brazil (EWZ), Russia (RSX), India (PIN), and China (FXI), will match that of the US. China alone will reach two thirds of the American figure for gross domestic product. All that requires is for China to maintain a virile 8% annual growth rate for eight more years, while the US plods along at an arthritic 2% rate.

“BRIC” almost became the “RIC” when O’Neil was formulating his strategy a decade ago. Conservative Brazilian businessmen were convinced that the new elected Luiz Inácio Lula da Silva would wreck the country with his socialist ways. He ignored them and Brazil became the top performing market of the G-20 since 2000. An independent central bank that adopted a strategy of inflation targeting was transformative.

If you believe that the global financial markets are back into risk accumulation mode, as I do, then you probably should top up your Brazil position, as it has lagged in the smaller emerging markets so far this year. Jim Chanos, you may be right about a China crash, but you’re early by a decade!

By. Mad Hedge Fund Trader


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News