Goldman Loves These 50 Stocks With Heavy BRIC Exposure


Where do you place your money now that every stock market has gone crazy? Goldman Sachs (GS) says to buy into the most aggressive part of the market — the companies with the most exposure to the so-called BRICs (Brazil, Russia, India, and China).

Says Goldman (via The Pragmatic Capitalist)

We favour exposure to Brazil, Russia, India and China (BRICs) over developed markets given the significantly higher GDP growth outlook. We believe investors should use this basket to identify stocks with high exposure to emerging market growth. Long/short investors should consider buying this basket against the S&P 500 to gain exposure to higher growth in the BRICs countries versus slower growth in developed regions.

Here they are by sector and weighting. On average, these companies have 56% non-US exposure, and 25% BRIC exposure.:

Information Technology (19% of basket)

  • (SOHU)
  • Genpact (G)
  • Marvell (MRVL)
  • Fairchild Semiconductors (FCS)
  • Novellus (NVLS)
  • Silicon Labs (SLAB)

Consumer Staples (14% of basket)

  • Central European Distribution (CEDC)
  • Avon Products (AVP)
  • Bunge (BG)
  • Corn Products International (CPO)
  • Philip Morris (PM)
  • PepsiAmericas (PAS)
  • Coca-Cola (KO)

Healthcare (14% of basket)

  • Mylan (MYL)
  • Pfizer (PFE)
  • Waters Corporation (WAT)
  • Varian Medical (VAR)
  • Bristol-Myers Squibb (BMY)
  • Schering-Plough (SGP)
  • Illumina (ILMN)

Energy (13% of basket)

  • Atwood Oceanics (ATW)
  • Global Industries (GLBL)
  • Pride International (PDE)
  • Helmerich & Payne (HP)
  • Schlumberger (SLB)
  • Dresser Rand Group (DRC)

Financials (11% of basket)

  • Citigroup (C)
  • Morgan Stanley (MS)
  • ProLogis (PLD)
  • Franklin Resources (BEN)
  • White Mountain Insurance (WTM)
  • Bank of New York (BK)
  • Bank of America (BAC)

Industrials (8% of basket)

  • Copa Holdings (CPA)
  • Expeditors (EXPD)
  • Avery Dennison (AVY)
  • Boeing Company (BA)
  • Emerson Electric (EMR)

Consumer Discretionary (8% of basket)

  • Central European Media Enterprises (CETV)
  • CTC Media (CTCM)
  • Las Vegas Sands (LVS)
  • Yum Brands (YUM)

Utilities (5% of basket)

  • AES Corp (AES)
  • Duke Power (DUK)

Materials (5% of basket)

  • Newmont Mining (NEM)
  • Mosaic (MOS)

Telecom (3% of basket)

  • NII Holdings (NIHD)
  • American Tower Corporation (AMT)

The full data on these companies can be found here.

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