This Day On The Street
Continue to site
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

5 Investment Ideas From Wall Street: Jan. 27

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CHL $57.45 0.00%
GMM $55.32 0.00%
PKX $49.76 0.00%
VWO $34.84 0.00%
AAPL $93.64 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs