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**UMATURLIN** · 01-20-2011, 08:07 AM

18 Jan, 2011, 09.12PM
Goldman Sachs warns against investing in China, India,.....

London . Goldman Sachs , the US investment banking giant, has issued a short-term alert over investing in India and China due to the impact of rising inflation, advising clients to rotate into Wall Street and other bourses as a safer bet over coming months, a media report said on Tuesday.

"We're not as tactically positive on the BRIC as we have been," said Tim Moe , the bank's chief Asia-Pacific strategist, referring to the quartet of Brazil , Russia , India, and China, the Daily Telegraph reported.

"To be frank, we may have held on too long to our overweight position in China last year.
. We have decided that discretion is the better part of valour and have tactically reduced our weight.

Asia is not in the sweet part of the cycle. The longer-term picture of Asia outperforming the US is taking a breather," he said, speaking at a Goldman conference in London.

The cooling ardour for China is significant shift for the bank that coined the term BRIC and has been the cheerleader of the emerging market story over the past decade.

"India's current account deficit is running at a record pace of 4.1 percent of GDP and it is 100 percent funded by short-term portfolio flows, which cannot be relied on indefinitely," said Moe, describing Mumbai's bourse as "crowded".

Goldman insists that the longer-term super-boom remains healthy in both the BRIC nations and a broader group of countries, or "N-11", led by South Korea, Indonesia, the Philippines, Turkey and Egypt.
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01-20-2011, 08:07 AM	#1
UMATURLIN Join Date Oct 2005 Posts 446 Senior Member	Goldman Sachs warns against investing in China, India,..... 18 Jan, 2011, 09.12PM Goldman Sachs warns against investing in China, India,..... London . Goldman Sachs , the US investment banking giant, has issued a short-term alert over investing in India and China due to the impact of rising inflation, advising clients to rotate into Wall Street and other bourses as a safer bet over coming months, a media report said on Tuesday. "We're not as tactically positive on the BRIC as we have been," said Tim Moe , the bank's chief Asia-Pacific strategist, referring to the quartet of Brazil , Russia , India, and China, the Daily Telegraph reported. "To be frank, we may have held on too long to our overweight position in China last year. . We have decided that discretion is the better part of valour and have tactically reduced our weight. Asia is not in the sweet part of the cycle. The longer-term picture of Asia outperforming the US is taking a breather," he said, speaking at a Goldman conference in London. The cooling ardour for China is significant shift for the bank that coined the term BRIC and has been the cheerleader of the emerging market story over the past decade. "India's current account deficit is running at a record pace of 4.1 percent of GDP and it is 100 percent funded by short-term portfolio flows, which cannot be relied on indefinitely," said Moe, describing Mumbai's bourse as "crowded". Goldman insists that the longer-term super-boom remains healthy in both the BRIC nations and a broader group of countries, or "N-11", led by South Korea, Indonesia, the Philippines, Turkey and Egypt. .
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