These
BRICs
aren’t blocks for houses but they can make for good building blocks to diversify your portfolio. The
BRICs
are the largest and most talked about emerging market countries. They include
Brazil
,
Russia
,
India
and
China
. Emerging what? Emerging market countries are those with economies that aren’t developed like the U.S. or Canada. Yes,
China
has the second largest economy in the world, but it is technically still “developing.”
When used as a diversifier in your investment portfolio, these countries can represent opportunities for growth. Currently, most of the world’s millennial's are located in emerging market countries. Companies like
Uber
are expanding into these huge markets. Here are some more stats on the
BRICs
:
- Emerging Market stocks have outperformed the S&P 500 (the measure of the broad U.S. stock market) in 11 out of the past 17 years (Morningstar).
- Emerging market countries contribute 72% to global growth (Global Gross Domestic Product). The U.S. contributes 13% and the United Kingdom contributes 3% (GS Global Investment Research).
- 59% of the world’s population lives in emerging market countries.
- Millennial’s in emerging market countries account for 54% of global online retail purchases (Goldman Sachs Global Investment Research 2017).
Have a great weekend Savvies!
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