Goldman's BRICs and N11: A kid could do this research

I have been meaning to do a post on Goldman Sachs' common sense "research" for some time.  Goldman has two lists which they have coined and are seeking to cash in as the world undergoes a dramatic shift in economic weight as developing countries catch up with the developed world.

They coined the Terms BRICs and N11 and have gotten a lot of mileage from their "research" for potential investment into the developing world. We will take a look at the two terms and what they mean.

BRICs stand for Brazil, Russia, India and China, which Goldman claims hold lots of promise over the generation.

The Next 11 (N11) countries to watch per Goldman are Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam.

Their website states that these lists are based primarily upon macroeconomic stability, political maturity, openness of trade and investment policies and quality of education. However, if your put these two lists together their is one blatantly obvious input that they are leaving out: population.  Their lists read with the exception of South Korea, as a list of the most populous developing countries.  Ethiopia and Myanmar are left off the lists probably for the reason they mentioned.

Their forgetting to include demographics as the main driver of these countries (intentional or not), is dishonest.  I guess they don't want their clients knowing that their kids could have come up with this list on their own without having to pay thousands for their research. 

EconomyPolitics has their own List of Incremental GDP, which includes both developing and developed markets.  The difference is that we explain up front that demographics is the most important thing to look for when seeking growth.  Ignore demographics at your peril.

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