Morgan Stanley managing director Ruchir Sharma wants emerging market investors to start looking ahead, arguing the next big markets will not be found among the BRICs.
In a recent Time article, Sharma points out that growth is slowing in Brazil ( EWZ , quote ), Russia ( TRF , quote ), India ( IFN , quote ), and China ( FXI , quote ).
The host of new counties replacing the BRICs will be “emerging markets that beat the expectations and rivals in their income class.”
Sharma highlights South Korea, Poland, the Czech Republic, the Philippines ( PHDOWD , quote ), Indonesia ( IF , quote ), and Turkey ( TUR , quote ) as the new winners in the global economy.
These countries are playing to their strengths, whether it be Korea’s manufacturing might, Indonesia’s commodities, or Poland’s fiscal responsibility.
The Morgan Stanley executive makes it clear that he is not bearish on the BRICS. However, he sees economic growth in these countries stabilizing, while new capital flows to the new emerging economies. Expect to see more growth in the overall world economy as a result, according to Sharma, while “investors betting big on emerging markets rising as a class will start treating them as individual stories.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
via Morgan Stanley exec: Turkey is the next frontier – NASDAQ.com.