Martin Klein has 40 News online.
According to a survey of 750 international, mainly expatriate investors, mostly belonging to the US, UK and continental Europe, China and India make a more compelling proposition than the first half of the BRICs acronym.
The survey by Tokyo-based broker XTM-Group found that 42 per cent of international investors felt positive about China and 32 per cent about India, while only five and six per cent respectively felt positive about Brazil and Russia.
This is the first time China and India has decisively hit the very peak of international investor confidence,
XTM-Group general manager Alexander Hoffman stated on Friday. The findings come from the broker's fifth annual confidence and sentiment survey and are seen to pinpoint sharp disparities between the two halves of BRIC, notably the Asian and non-Asian ones.
Experts said the two-stroke confidence that appeared to be operating with BRIC might force a rethink on the term to argue that BRIC economies would eclipse the world's current richest countries by the year 2050.
Mr. Hoffman said the XTM-Group survey clearly showed that all the BRIC countries can no longer be lumped together and the focus of investment geography was fast moving east. He said the survey found that international investors appeared keen to differentiate between the two kinds of economies that make up BRIC - the old-style ones in Brazil and Russia and the new, more avant-garde ones, i.e. India and China. XTM-Group investors appeared focused on the fact that Asian markets are growing more because they "perform well; have reformed fiscal policies; have the right political background and climate; and have a domestic market that is increasingly inclined to consumption". Mr. Hoffman said the survey found that investors appeared less worried than in 2011 about lack of knowledge and poor corporate governance in China and India. But investors felt that Brazil and Russia depended for growth on their resources, which is more typical of static old-style economies, he said.
The XTM-Group survey shows that despite 47 percent of investors voicing concern about rising oil prices, energy-abundant Russia was marked down for a lack of transparency, its political climate and unstable governance. Concerns about Brazil are colored by over nationalization and a risky political situation, it said.
Mr. Hoffman said it is revealing that international players with anywhere between 50,000 and one million Euros to invest appeared not to think that Brazil and Russia would be eclipsing the economies of the richest countries on earth any time soon. "China and India makes for a much more compelling proposition", he said.
The XTM-Group survey also found a huge shift in confidence from developed to emerging markets with confidence in China rising from 38 per cent in 2005, but dropping for Europe from 36 percent to 22%. Confidence in the UK has plummeted from 37% to 14% and in the per cent.
XTM-Group is a managed futures advisory firm which assists investors with investing through professional money managers known as Commodity Trading Advisors (CTAs). CTAs belong to an asset class called Managed Futures. XTM-Group helps investors select a Managed Futures Program that’s right for them, open a trading account for the CTA to manage, and monitor the trading activity of the Managed Futures Program on an ongoing basis.