This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

BRICs Are So 2000: Care for a MINT?

Stocks in this article: GS EWZ EWW EIDO NGE TUR

NEW YORK (TheStreet) -- Jim O'Neill, then with Goldman Sachs (GS), famously called Brazil, Russia, India and China the BRICs in 2001, and those who followed him into those economies were richly rewarded.

Buying into developing economies is like buying technology stocks. You want to get in early, ride the adoption curve, and get out when the crowd moves in. The risks are high, and so are the rewards.

But the BRICs are so last decade.

Instead O'Neill, now an honorary professor at the University of Manchester and a Bloomberg columnist, has a new acronym for investors: MINT. It stands for Mexico, Indonesia, Nigeria and Turkey. These are the countries to watch for the next decade, he argues. All are young in an aging world, and they all have interesting economic prospects.

Not all of O'Neill's calls are consistent winners. O'Neill writes that Russia's growth is already slowing, while China's is continuing, and Brazil's GDP growth is now below that of the U.S. But if you bought a Brazil ETF such as the iShares MSCI Brazil Index  (EWZ) a decade ago, you have more than doubled your money.

Mexico

The iShares ETF for Mexico is traded as (EWW), and that's the sound investors have been making about it for the last year, when it has fallen nearly 16%.

But Mexico has a median age of 26, a full decade younger than the U.S.'s, which is 37. That means there's great human capital potential in Mexico.

The World Bank estimates Mexico's GDP grew almost 3.9% in 2012. Mexico, not the U.S., is the home of the world's richest man, Carlos Slim. Growth slowed to just 1% in 2013 but is now expected to pick up, thanks in part to its role as a low-wage manufacturing hub for the U.S.

O'Neill has been quoted as saying Mexico's economy has "a perfect storm of benefits" but that doesn't mean things are great. Many workers remain in the underground, untaxed economy. The country is made dangerous by a drug war over exports of cocaine, heroin and other drugs to the U.S.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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