Canadian Capitalist

I finally managed to find the Goldman Sachs research paper titled Dreaming with BRICs: The Path to 2050. The report concludes that the BRIC economies of Brazil, Russia, India and China together would be larger than G6 (G7 excluding Canada) in USD in less than 40 years.

I found it really interesting that incremental demand of the BRICs could be larger than that of G6 as early as 2009. This conclusion shouldn’t be surprising as the effect of China’s voracious demand on commodity prices is already apparent.

The forecast has implications for investing (keeping in mind that long-range forecasting is a risky business):

1. Significant direct exposure to emerging markets (through index funds like the iShares Emerging Markets).
2. Exposure to companies selling energy, materials and commodities to emerging markets.
3. Some of the increasing spending by BRICs is likely to be captured by multi-national companies (more people consuming Coke, Pepsi and Gillette).

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