Official GDP data, due on Friday, is likely to show that Brazil expanded just 0.5 percent in the first quarter from the previous three months, while Russia has cut its growth forecasts for the year to 3.4 percent due to slowing investments.
China has also pared its growth target to 7.5 percent for 2012 from an 8 percent goal in place since 2005. It grew 9.2 percent in 2011.
As BRIC countries downshift to lower “growth plains,” Sharma says the “stars of the past decade” may loose their shine to smaller emerging markets including the Philippines, Indonesia and Thailand.
Mark Matthews, Head of Research Asia at Bank Julius Bear, agrees Southeast Asian markets offer a more attractive alternative.
“The whole BRIC asset class had this amazing run. Its time in the sun was the last decade because what was going on in the U.S. was just miserable, and now I think there are perfectly good alternatives to the BRICs in other places,” Matthews said.
By CNBC's Ansuya Harjani
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