Goldman Sach’s Jim O’Neill on Russia replacing Brazil as his top BRIC tip
Posted on 02 August 2011 with 1 comment from readers
A week after ArabianMoney presented the case for the UAE as an investment opportunity to the Agora Financial conference in Vancouver, it was interesting to hear Goldman Sach’s Jim O’Neill on Bloomberg saying that energy rich Russia is now his top pick over Brazil.
On what his top BRIC pick would be now he said: ‘No it would not be [Brazil]. I mean I’ve loved Brazil for many years but nothing ever goes in a straight line. I worry about the real – it’s far too strong. Very controversially, of the four, I would actually pick Russia right now. I think it’s got a lot of value and at the margin they’re doing one or two things in a better direction.’
BRIC outlook
It’s rather a brief interview. ArabianMoney thinks the outlook for Brazil and Russia is very different to India and China, at least for the next couple of years. There is a major correction coming for both China and India while Russia and Brazil are energy rich and will benefit from global inflation.
Longer-term the BRIC countries should indeed all outperform the older developed countries, though we would add the Gulf Oil States and possibly South Africa, depending on political stability, to that list. Australia and Canada are best placed to grow among the older developed countires again due mainly to natural resources and price inflation.
1 Comment posted by readers:
Before you listen to any advise from someone working for Goldman, you might want to watch the 2010 Oscar nominated documentary ‘Inside Job’. It is an eye opener. I like how they have even infiltrated academia. The helicopter shots made me dizzy on the 55 inch TV. Great views of NYC though. If every American saw it, they might revolt when it happens again. Unfortunately, they are more concerned with football, than how they have been robbed.
Putin just made a very negative remark about the USA. Still mad that we beat them to the Moon and destroyed their dream of a global communist empire, no doubt. Russia is controlled by gangsters. China too. China just had a big riot after their security police beat a disabled street fruit vendor to death. That is the kind of regime Western companies are enriching with trade and technology transfer.