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**esanamaserrn** · 01-20-2011, 09:29 AM

Here is the full telegraph.uk article. You missed part of the article about India getting hit hardest by inflation amongst the BRIC countries.

I had mentioned previously that while China will be faced with inflation, they are well poised to handle it because of its strong fiscal position. It can support key food and energy prices without incurring deficits. India on the other hand has large budget deficits and price support is increasing its high debt to GDP position.

Goldman Sachs shuns the BRICs for Wall Street
Goldman Sachs has issued a short-term alert on China and India as inflation rears its ugly head, advising clients to rotate into Wall Street and Old World bourses as a safer bet over coming months.

India is an even bigger worry, with yawning twin deficits, and overheating visible on all fronts. The nation's central bank warned this week of "surging inflation".

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

"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 invented the term BRICs and has been the cheerleader of the emerging market story over the past decade.

India is an even bigger worry, with yawning twin deficits, and overheating visible on all fronts. The nation's central bank warned this week of "surging inflation".

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

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, 09:29 AM	#3
esanamaserrn Join Date Oct 2005 Posts 475 Senior Member	Here is the full telegraph.uk article. You missed part of the article about India getting hit hardest by inflation amongst the BRIC countries. I had mentioned previously that while China will be faced with inflation, they are well poised to handle it because of its strong fiscal position. It can support key food and energy prices without incurring deficits. India on the other hand has large budget deficits and price support is increasing its high debt to GDP position. Goldman Sachs shuns the BRICs for Wall Street Goldman Sachs has issued a short-term alert on China and India as inflation rears its ugly head, advising clients to rotate into Wall Street and Old World bourses as a safer bet over coming months. India is an even bigger worry, with yawning twin deficits, and overheating visible on all fronts. The nation's central bank warned this week of "surging inflation". "We're not as tactically positive on the BRICs as we have been," said Tim Moe, the bank's chief Asia-Pacific strategist, referring to the quartet of Brazil, Russia, India, and China. "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 invented the term BRICs and has been the cheerleader of the emerging market story over the past decade. India is an even bigger worry, with yawning twin deficits, and overheating visible on all fronts. The nation's central bank warned this week of "surging inflation". "India's current account deficit is running at a record pace of 4.1pc of GDP and it is 100pc funded by short-term portfolio flows, which cannot be relied on indefinitely," said Mr Moe, describing Mumbai's bourse as "crowded". 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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