Professor Elam

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Did you Hear the BRICs Crash?

The  financial Planner who signed up my account when I was recently at another school was stunned that I did not put all my money in the stock market.  He said his was in the BRIC countries. I had some money in gold and commodities and exited early, very early, this year. Let''s see how he is doiing.

Brazil    EWZ    Down 100-40

Russia    RSX    Down 60-20

India    INP    Down 115-40

C     China    Down 62-30

Wel you make the call.

You will notice I have assigned a book report. And I recommended one of Jim Rogers books to several of you, how are you coming on that by the way?  Rogers was suspect about india, too much red tape and regulation.Russia he said was due for 30 years of civil war. I commented in a recent post that the high oil prices had made pseudo players out of back benchers like Russia that really had no economy other than commodity exports. Now that is obvious.  And it is obvious that most of those countries were beneficiaries of the Western economies. Really reading and learning about both our world and the technical analysis and all these factors will make better students. Honest.

so is BRIC a buy now, or just good for the proverbial  bounce?  That of course is THE question.

good reading!

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One response to “Did you Hear the BRICs Crash?”

  1. Perspective Avatar
    Perspective

    Don’t miss read Russia. They have one of the largest cash and gold reserves in the world; debt is at 7% of GDP versus our 85% and is the lowest for the emerging markets; GDP growth will be double that of the US for decades to come despite the global downturn; they don’t believe in debt so they did not buy any of the sub-prime toxic securities; commodities like gold, diamonds and other precious metals are good commodities to own during an economic crisis; they have diversified sectors like consumer products, timber, financial sector, media, internet, Airplanes, cars, and telecommunications; They are experiencing an industrialization phase as they rebuild the old Soviet Infrastructure and the financing is already in place; Plus they have put hundreds of billions in green technology, fusion and Nano technology, of which they are now equivalent to the US in. Most experts on the BRICS took profits out of the RTS when it reached a high 6 months ago and now have the cash. It is time to buy, just ask Credit Suisse and Templeton who just said to start buying Russian bargains.

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