Buy, Sell or Hold Update: Brazil ETF Soars in Three Trading Days

The iShares MSCI Brazil Index (EWZ), an exchange-traded fund (ETF) that was the topic of the “Buy, Sell or Hold” feature on Monday, surged as much as 31% in the first three days of this week.

The shares, which closed Friday at $29.94, traded as high as $37.25 in late afternoon trading Wednesday – at that point representing an aggregate gain of 31% in the week’s first three days.

The ETF ended Wednesday’s trading session at $35.89, an increase of $2.31 per share, or 6.88% for the day. At that closing price, EWZ shares had logged a gain of $4.05 a share, or 14%, since Money Morning Contributing Editor Horacio Marquez recommended the ETF in his Monday column.

“Brazil is going to be a global powerhouse,” Marquez said in an interview Wednesday. “Where else can you invest directly in the global oil industry, as you can here with Petrobras (PBR)? In fact, they play in all the key commodity sectors, including iron ore” – a key ingredient in steelmaking, by virtue of the Brazil-based Vale (RIO), formerly known as Companhia Vale Rio.

Brazil has $200 billion in foreign-exchange reserves, is conservatively managed, has kept its interest rates well above its inflation rate, has seen its debt get upgraded to investment grade, and recently allowed its currency – the Real – to depreciate, a move that will transform the country into an exporting force, he said.

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Comments

[maine whiz:]

vaya vaya vaya EWZ

2008 Oct 30 01:30 PM

[VSD:]

The Fed Swap line with Brazil helps too...

2008 Oct 30 04:12 PM