BW: The BRIC Debate - Drop Russia, Add Indonesia?

So perhaps we are looking at IBRIC? Or BRICI?

by: Mark , TraderMark

That said, I never was able to catch the tail on the donkey named Market Vectors Indonesia ETF (IDX) as the only true pullback it had in 1.5 years (last May), I missed my limit order by a few dimes. Clearly it would have been far better to just buy the very extended chart in May 2009 around $40 and take the ride, but we are always so much smarter with the ability of 20/20 hindsight. Probably one of my biggest regret's the past 2 years was not once catching this train.

MIKT is the new BRICs

Jim O'Neill, chairman of Goldman Sachs Asset Management and creator in 2003 of the term BRIC economies, referring to Brazil, Russia, India and China, now says he sees the rise of the MIKT economies, referring to Mexico, Indonesia, Korea and Turkey.

O'Neill said he was adding these four countries to his list of growth economies that could prosper despite whatever happens in advanced countries.

O'Neill has already included Korea's economic potential in his list of the "Next Eleven," a class of countries that are forecast to emerge as the new axis of the global economy.

Investors have injected a great amount of money into BRICs since 2007, when investment in emerging markets was booming.

The Stories You Missed in 2010 : The Indonesian Tiger

While economists debate whether China or India will dominate the world economy of the 21st century, another rising Asian power is quietly entering the picture. Relatively unscathed by the global financial crisis, Indonesia's economy was projected to grow at a healthy 6.1 percent clip in 2010 and 6.3 percent next year, one of the fastest rates in Asia (and the world). What's more, its per capita GDP is projected to increase almost 20 percent in the next two years. Since 2009, Indonesia has had Asia's second-best-performing stock market. A number of analysts are now suggesting that the BRIC grouping might soon need to add another I.

Part of the growth is driven by the country's abundant natural resources -- it is a major exporter of timber, coal, and silver -- but Indonesia's manufacturing sector is growing as well. Chinese clothing and furniture companies, which prospered by making goods for the American market, are now increasingly moving production to Indonesia, taking advantage of a free trade agreement between the two countries, which is just now coming into effect.