I think the original was Brasil Russia India China? Hard to find 4 more divergent economies and societies.BRICS+ is just marketing+ from the people (but not the person) who brought you BRICs. Maybe the S is Singapore?
It’s worse than that. The S is South Africa.
Back to the original question. A world focused portfolio, which OP already has, seems sensible for OP’s situation. Tilting to countries that are bastions of corruption and mismanagement, and trying to tilt away from the default global currency? Meh. I’m not a fan.
So Russia is no longer part of the indices.
I wouldn't call China "mismanagement" -- after all, the Western world staged the Global Financial Crisis in 2008-09 (and the Eurozone Crisis after that). They are conducting an experiment in a form of state capitalism. So far, they have been incredibly successful. In absolute terms the largest GDP increase in world history for the time period (1979-2023). How they deal with the current property bubble is an interesting test -- in some ways, the Asia Crisis of 1997 is the shadow overhanging the situation.
The point is why overweight? In an efficient market, the low valuations of companies in these markets (roughly half US PE, like for like) reflect the risks and issues.
Why do we think we know something the market doesn't know about the prospects of these companies? Why do we think that they are inefficiently priced?
Statistics: Posted by Valuethinker — Thu Oct 31, 2024 4:08 am