EDITOR'S LETTERMerryn Somerset Webb
Buy a Bric, skip the Mints
I went on BBC Money Box last weekend to talk about emerging markets. Jim O’Neill, the ex-Goldman guru who came up with the idea that everyone must invest in the Brics (Brazil, Russia, India and China), has given us a new acronym summing up where he thinks we should put our money now – Mint (Mexico, Indonesia, Nigeria and Turkey).
Did I think, asked our BBC host, that this would be a good idea? My answer? Not particularly. Back in the days when everyone went on endlessly about the Brics, Albert Edwards of Société Générale rebranded the idea as Bloody Ridiculous Investment Concept. He isn’t too impressed by Mint either – to him it is just More Irritating New Terminology.
The key point is that there is rarely a link between economic growth and stock-market returns. Quite the opposite…
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