The Breakdown of the BRICs

Is the decade-long BRIC dream over?

Bloomberg reports that capital flight from Brazil, Russia, India, and China has sent their bonds, currencies, and stocks down together for the first time since 2006.

Since 2003, when Goldman Sachs predicted this league of developing economies would join the ranks of the world’s biggest, the MSCI BRIC Index has returned about 227 percent; this year, however, it’s trailing the Standard & Poor’s 500-stock index by the most since 1998.

From 2005 through last year, investors piled $52 billion into BRIC mutual funds, according to research firm EPFR.

This year investors have yanked $13.9 billion from the category.

Read more... Anything BRIC seems to be struggling.