I agree with Norbert.  I'm in emgix and mindx, with mindx being the better right now.  Last yr, emgix was doing better. 

I think all the BRIC countries have very good up side potential.  I think they will peak at different times.  Last yr. I was working for a european company, they seemed to be outsourcing to india and china.  I think the trend will continue, but due to infrastructure, and types of jobs the rate may be different.

As said in other posts, India has done the worse of the group.  I'd expect more growth in B&R not in I &C this next yr.  So new $ for me will go to R & Tramx.

Kerryvan,

Don't you worry about "buying high" if you put new $$ into Brazil as it surges and ignore I & C when they are well off their highs?

You missed my comment,  new $ would go into russia and tramx,, 

russia play's i'm in eurox, tremx, letrx  - with letrx being the pure play

I'm not putting new $ in prlax, or flatx..  I'd be violating my 10% rule for investments,

Sorry for the oversight, Kerryvan.

I, too, hold TRAMX, but am afraid to add $$$ here, as it has had a nice run.  I still remember how it went down 10% in one day.  Its a nice, tiny holding for me, and it will stay that way.

I've been wanting to buy EEB (a BRIC), but its so heavily weighted in Brazil.  I like the idea of India (MINDX) well off its highs, but then again, it was down a LOT more just a few weeks ago.  Russia seems to be high up on more and more lists these days, which always makes me wary.  I think its all just a crapshoot, in the end.

I did start investing in MAPIX recently, and maybe I should stay with that - its a little less volatile, and more "spread out".

Joe

 

 

I have no idea if it's a good time to invest in India, but based on the valuations, I'd stay away.  It used to be that developing markets sold at a discount to developed markets because of the potential instability, weaker corporate governance, corruption, etc.  Today, it's gone the other way.  On a P/B basis, India is about twice as expensive as the US and more than three times as expensive as more developed countries like Germany, Japan, and South Korea. 

You should remember that buying stocks in a country is not the same as buying the country itself.  Historically, stocks in developing countries have been a rather crummy investment.  A major reason for this is the lack of corporate governance and a strong norm of shareholder capitalism - corporations often issue new stocks like crazy, diluting existing shareholders.  Even if you have a dramatic increase in earnings, you won't realize dramatic gains if your shares are diluted dramatically as well.

Best,
Oildog

In my limited view, India grew with US outsourcing (except example like steel/Mitel). IMHO, India is very tied with the US economy up to 12/07. I like LA, ME/A, R, C and I, in this order today. JMHO. KM

I really question the wisdom of investing in BRIC funds, or individual B, R, I, C funds.  When everyone is talking about something, then it's likely that it's a fad and the markets there are probably overpriced.

What's more, as Oildog mentions, you're not investing in a country, you're investing in stocks.  What makes anyone so certain that a company in the BRIC countries, will do better than a company in Korea, Taiwan or any other developing country?  If you want emerging markets exposure it makes more sense to cast a wide net, rather than focusing on a faddish grouping of countries. 

While BRIC countries probably will keep growing, what people need to realize is that growth is not going to be reflected purely in the local stock markets.  You'll see the benefits in Japanese, European and even U.S. companies.  If the BRIC stocks were especially cheap that would be a different story, but they are not. 

People always overpay for growth, this time is no different.  Someone in the Fidelity forum was asking why Fidelity's portfolio analysis always suggested adding growth funds.  Well, this is a real time example of why.  Growth is what everyone wants, even though it's not what gets you the best investment returns. 

I agree Nagork and the rest.. 

Butt?  If a Fund has a High Side of say double vs my other funds?

I can get more bang for my Buck and just invest 50% less in them and see how it goes.. Then If all goes well? WD my Cost Basis and let the Profits ride..( think PRLAX, CGMRX/FX, FLVCX 7 The Mathews China Fund )

of course, this is assuming that I have fully funded my Retirement Port first , have my home on a pay off plan in 15 yrs., paid off my Credit cards and then I can go play with leftover $...

Otherwise? You just can't afford to play this game.

Remember when> Nixon said in Feb 74'" We are going thru what I would say is a downturn in our Economy, but the prospects are good for the rest of the year" Then we had the Oil Embargo, Long Gas lines, rationed gas and the longest Recession since WWII followed.... In  74'.. int. rates were about 13% and  Inflation in Oct of 74' was  ( get this ) + 12% from just 3% in 72'.

As for India? Was there in the late 60's & again in the 90's and I find it simply amazing How those people survive, let alone prosper..Their Poverty makes our slums look like the Wealthy .. They even have a seperate dept of Cleaning the streets of Dead People and it's over loaded! ( Dozens collected daily in every Major City )  Democracy? Sure...In a Pigs eye..the Royal Families just took over when they kicked the British out...Just like so many other "Phony Democracies" around the world...And after we let Japan Go . ( Just think if we Kept Japan and ran it as another state in our Country? , like we do with the Southern States..)

LOL

 

 

The reason I have for individual country funds is exposure to booming markets.  Who will understand the local growth better, individual counrty managers whose focus is that economy/ market space or a manager that has to focus across many markets & countries.  The manager spread across has to judge which market/ company is better, weighting two situations against one another.  comparing apples and oranges.

The focused manager will notice smaller companies/ opportunities that pose a unique opportunity that would be missed without details of the local situation.  A multi country manager will play the majors, and miss out on smaller sound opportunities.

If you don't want to participate in markets that have double digit growth for 3 yrs and predictions is it will continue for the next couple yrs, go ahead and stay US based with flat markets.

The US companies that are doing well right now are experiencing flatness in the US and the foreign business is bringing in the profit. McD's for example...

the local food companies are out growing McD's in china.  By owning US funds and china funds, I'll win as the two companies fight for market share..

or you could choose sides and hope you pick the winner.

BRIC funds allow the movement to what the manager sees as a better value opportunity.  Thus if I invest 5% in each of the BRIC countries and 10% into a BRIC fund, then I'll have some portion that will move the weighting based on currency, value etc.  Russia seems to be going upward compared to the others this past month.