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

Emerging Markets: Goodbye BRICS, Hello MIST

The investing acronym BRICS (as in Brazil, Russia, India, China and, more recently, South Africa) was conjured up by Goldman Sachs (GS) economist Jim O’Neill back in 2001. It has since become synonymous with vibrant growth, of the sort the mature, developed economies supposedly can no longer achieve. Yet does the BRICS moniker really still resonate with investors?

There’s no denying that these big emerging economies continue to play a meaningful role in the world economy.  “The BRICS alone have been responsible for 55% of global growth since the end of 2009,” the Economist points out. “Dragged down by debt and austerity, the 23 countries that make up the developed world contributed just 20% to that growth.”


However, stock prices in Brazil, Russia, India, and China as of mid-March have lagged behind U.S. indices for a fourth straight year, due to disappointing economic growth and corporate earnings. While the Dow Jones Industrial Average and the S&P 500 Index are trading at an all-time high, the iShares MSCI BRIC Index (BKF) is down more than 30% since the start of 2008.

BKF Total Return Price Chart

BKF Total Return Price data by YCharts

Investors in the BRICS countries are also losing their appetite for equities, according to Bloomberg Businessweek. Trading by Brazilian individual investors has dropped to the lowest level since 1999, as the benchmark Bovespa index has fallen 7 percent this year. Russian mutual funds posted 16 straight months of outflows, according to the publication.

Small wonder then that the Wall Street money shops, including Goldman, have started touting a new emerging market acronym: MIST, as in Mexico, Indonesia, South Korea, and Turkey. These nations make up a big chunk of Goldman’s N-11 equity fund launched in early 2011.

In terms of GDP and fund holdings, the MIST nations are the biggest markets in Goldman Sachs’s N-11 Equity Fund (GSYAX) launched in February 2011. The fund had $113 million in assets (as of June 30) spread out across 73 stocks. It’s up about 16% over the past year.

The takeway: bye, bye BRICS and hello MIST?

1 of 2

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
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs