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Brics Group and its influence on USD and US shares

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Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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    Brics Group and its influence on USD and US shares

    Hi, I am a new subscriber to MM and just want to thank you for your valuable insight in this volatile market. I just want to ask what your view is on the Brics alliance (currently Brazil, Russia, India, China, South Africa as well as Saudi Arabia if I am correct) and the influence of this expanding alliance on the outlook of the USD and US shares. Would you consider an ETF to obtain exposure to these markets, for example India and China? Thank you and kind regards, Sue.

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    Hi Sue,

    Welcome to MM!  Great to have you on board and glad you’re getting value from the service. If you (or other new subscribers) have questions, queries, comments about how best to get the most from the reports or website, please don’t hesitate to reach out.

    The BRICS alliance was founded in 2006 by Brazil, Russia, India and China, with South Africa joining in 2010.  It’s had little impact on financial markets in over 15-years and we see no reason to suspect it will in the coming years.

    In terms of the BKF ETF, illustrated below, whose exposure is dominated by China 43%, India 42%, and  Brazil 10.5%, we like its risk/reward as it represents a quasi play on a resources/China recovery – initially we see 10-15% upside.

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    iShares MSCI BIC ETF (BKF US)
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