How to profit from MINT countries

If you’re not yet up-to-speed on the first buzz word of 2014, let me fill you in … The MINTs are the new BRICS.

Back in 2001 economist Jim O’Neill coined the term BRIC for Brazil, Russia, India and China, who he tipped to be the big growth stories of the coming decade. BRIC has since become BRICS with the addition of South Africa.

MINT refers to Mexico, Indonesia, Nigeria and Turkey. (Please share your best guesses on which countries could be added to MINT … MINTO (Oman) … MINTY (Yemen) … I’m sure you can do better than that …)

These four countries are linked by key themes: young populations, useful geographical placement, and (with the exception of Turkey) being commodity producers.

Listening to Jim O’Neill on these subjects, it’s easy to feel the urge to throw our every last penny into the stockmarkets of these countries. But I also can’t help wondering how often over the last decade journalists have called up O’Neill begging him to give them the next catchy investment acronym.

But the real problem with the MINT countries is exactly the same problem that we had with the BRICS … getting the right kind of exposure for medium-term investment. O’Neill uses a broad brush when he talks about the future of these countries – talking about where they’re going over the coming decade.

For ordinary investors, perhaps hoping to invest in the stock markets of these countries, it is worth noting that BRIC equities have lagged the developed world for several years now and are very likely to do so again in 2014. The BRICS have shown us that fast economic growth does not necessarily equate to good growth in stock markets. For this, we need to dig a little deeper.

My surest bets of the MINT countries would have to be Mexico and Nigeria, which are both perfectly placed for huge success. And (PLEASE!) I was only kidding about Oman and Yemen – the fifth MINT is, apparently, South Korea.

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