BRIC countries look like long-term play

Fidelity expects the emerging markets of Brazil, Russia, India and China to generate long-term growth.
JUN 26, 2008
The emerging markets of Brazil, Russia, India and China are expected to generate long-term growth. “Emerging markets are the creditors to the world,” which bodes well for the sector as a long-term investment, said Derek Young, co-portfolio manager of the Fidelity Strategic Income, Fidelity Strategic Real Return and Fidelity Strategic Dividend and Income funds at Boston-based Fidelity Investments. Over the short term, investors still need to be cautious because interest rate changes and inflationary pressures could affect those economies. “The potential is there for a surprise, and if that surprise shows up, it could be negative. But the fundamentals are still extremely strong,” said Mr. Young, a panelist at the investment conference of Chicago-based Morningstar Inc. being held in that city this week. Inflation is also a threat to emerging-markets countries because of increasing costs for food and energy, and increasing wages. The unknown is whether governments will react by raising interest rates. “If they make a policy mistake, that’s the risk factor right there,” Mr. Young said.

Latest News

Voya expands advisor managed accounts to add private market assets
Voya expands advisor managed accounts to add private market assets

Voya Financial adds private equity, credit and real estate options to its AMA program, building on support for looser federal investment rules in retirement accounts.

With executives leaving, Osaic’s Reid now in the spotlight
With executives leaving, Osaic’s Reid now in the spotlight

Shannon Reid, president of Osaic and the network’s number two executive, has plenty of challenges, industry executives said.

Investors sue crypto fund and platform, alleging $1.5 million never returned
Investors sue crypto fund and platform, alleging $1.5 million never returned

Auditors flagged the commingling. The COO allegedly knew. Investors kept getting the pitch

Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL
Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL

The advisors on the move include two brothers leading a family practice in Connecticut, and a husband-and-wife tandem working with business owners in the West Coast.

Most potential business successors think there's a plan – but owners say otherwise
Most potential business successors think there's a plan – but owners say otherwise

Business owners and their heirs may be making assumptions instead of having conversations, creating challenges for succession planning, according to new research.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.