This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Investment Ideas From Wall Street: Jan. 27

Stocks in this article: CHL PKX VWO GMM

3) Breakout the BRICs for 2012

Investors of emerging markets, listen up.

The MSCI BRICs index, with a gain of 12.2% so far this year, is beating global emerging markets, up 8.9% for the year. According to Geoffrey Dennis, analyst at Citigroup, "outperformance should be a key theme for 2012."

All four BRIC markets (Brazil, Russia, India and China) are ranked in the top eight for best performing emerging markets year to date. India is up 17.1%, Brazil up 14.1%, Russia up 11.1% and China up 9.4%.

Dennis' thesis is that "BRICS are at the forefront of the falling inflation and interest rate trends in emerging markets... All four BRIC countries have eased monetary policy recently."

The Citigroup analyst also points out that that valuations for BRICs are cheaper than their non-BRIC emerging market counterparts. "For example, BRICs currently trade at 9.6x forward verses 11.9x for the non-BRICs."

The firm is most bullish on China, followed by Brazil, Russia then India and forecasts at least a 25% gain for global emerging markets. In short, Citigroup says, buy on a pullback.

But take heed. Emerging markets got killed in 2011. India lost a whopping 38%. And, the "rotation" that Citigroup writes about may not sustain through the entire year.

Investors can find exchange-traded funds that track equities in BRIC countries as well as indices in emerging markets. TheStreet's top rated emerging market ETFs for 2012 include the Vanguard MSCI Emerging Markets ETF (VWO) and the SPDR S&P Emerging Markets ETF (GMM).

3 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs