Capital flows into BRIC equity and debt markets

Overview

BRIC equity markets have lagged developed markets so far this year, but we think this pattern will reverse in the second half of 2010. Over time the Greek crisis will trigger a historic migration of investment capital into emerging economies. The reasons are straightforward: emerging economies have substantially lower levels of debt and much better growth prospects than do the developed economies. Among the BRICs, Brazil, India and Russia stand to gain the most from these...