TIMPs are hot, BRICs are not – report


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The emerging markets of Turkey, Indonesia, Mexico and Philippines (or TIMP) are considered a sexy alternative to the BRICs nations -- the large emerging markets of Brazil, Russia, India and China

MANILA, Philippines – The hot new group of high flying emerging economies known as TIMP has eclipsed the once-trendy group called BRIC, a Reuters report stressed.

The Philippines is the “P” in “TIMP,” which Bob Turner, chairman and chief investment officer of Turner Investments, coined to group together Turkey, Indonesia, Mexico and the Philippines as the sexy alternative to the BRICs nations — the large emerging markets of Brazil, Russia, India and China.

A March 28 Reuters opinion piece — published at the tailend of the 5th BRIC Summit in South Africa — highlighted the 6.5% decline in the MSCI BRIC Index in the 12 months leading up to March 25.

Reuters noted that TIMPs’ record stock market gains range from 9.4% for Indonesia to 37.7% for the Philippines.

Against the smaller but excellently performing TIMP markets, the BRICs are “suddenly more mature, move a bit slower, and some hotter thing is threatening to replace you,” Reuters noted.

In a previous Turner Investments quarterly report, Turner wrote: “We believe other emerging nations are poised to challenge the BRICs over the next 30 years—and in the process inspire an acronym denoting their status as a new engine of global economic growth.”

He noted the the BRICs are “impaired by imbalanced economies, political corruption and poor demographics.”

The TIMPs could become the next generation to watch, said Turner whose investment firm has about $10 billion in assets under management.

What’s so hot about the TIMPs?

Reuters echoed Turner’s point that the TIMP nations “possess qualities that should keep them and their stock markets expanding rapidly and profitably. These include favorable demographics and strengthening economies and political institutions.”

The 4 emerging economies that are part of TIMP are unlike other nations also with young populations and fast growth potential, noted Turner. They have liquid stock markets, need infrastructure to build out, banking systems that are underleveraged, and have governments that have room to borrow to fuel growth because they are not overextended on credit, unlike in many mature countries.

Here are highlights:

  • Turkey is in a unique physical location that allows it to straddle between Asia an Europe, as well as Russia and the Arab nations. It has strong tourism and productive auto industry
  • Indonesia has a middle class that is growing swiftly by Asian standards, resulting in a rise in private consumption 
  • Mexico, also a manufacturing hotspot, has a new president who is looking to open up a strong energy sector to investment
  • The Philippines has a booming call center and resilient remittances from Filipinos working or living overseas

Emerging market acronyms

Emerging markets acronyms is not a new phenomenon. Turner has been cited for including the Philippines in “TIMP,” but previous acronym-makers have included or totally snubbed the Philippines before. Here are some of them:

  • CIVETS – Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa (coined in 2009 by Robert Ward, global forecasting director for the Economist Intelligence Unit) 
  • MIST – Mexico, Indonesia, South Korea and Turkey (considered another alternative to BRICs and the next tier of large emerging economies. ) 
  • MIKT – Mexico, Indonesia, South Korea, and Turkey (coined by Jim O’Neill of Goldman Sachs, who is also the creator of the term BRIC)
  • CAPPT – Chile, Argentina, Peru, the Philippines and Thailand (the first to include the Philippines)
  • PIGS – Portugal, Ireland and/or Italy, Greece, and Spain (used by international bond analysts, academics, and the economic press as a concise way to refer to the Eurozone countries of southern Europe noted for similar economic environments. It was later used to refer to countries that got bailout in Europe)

– Rappler.com

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