Emerging Markets Look to Maintain Velocity

By Kevin Grewal, editorial director at SmartStops.net

The world's biggest emerging markets, namely the BRIC nations -- Brazil, Russia, India and China -- are looking pretty healthy. Brazil has remained relatively strong due to the most recent surge in commodities prices. The South American nation is a major producer of copper, crude oil, gold, silver, iron ore and coal, which have all surged. Brazil's relatively stellar performance can be illustrated through the performance of the iShares MSCI Brazil Index Fund(EWZ Quote), up 60% from a February low of $31.95 to close at $51.17 on June 24.

Russia has been riding the tails of the recent crude oil rally and has been characterized by cheap valuations. The Market Vectors Russia(RSX Quote) has performed well since witnessing a February low of $10.60 to close at $20.29 on June 24, a jump of 91%.

India has performed relatively well due to new government policies that have ignited a focus on infrastructure spending and encouraged foreign direct investment. In addition, the nation's central bank has cut interest rates six times over the past eight months and the government has reduced taxes on its citizens and businesses. This has lead the WisdomTree India Earnings(EPI Quote) to increase 90% from its March low of $8.95 to close at $16.99 on June 24.

China has rallied as many experts believe the emerging nation will make a complete economic recovery before the end of the year due to its strong consumer confidence, a surge in urban fixed asset investment and the success of its stimulus plan. The iShares FTSE/Xinhua China 25 Index(FXI Quote) has surged 62% since hitting its March low of $22.80 to close at $36.88 on June 24.