Brazil ETF: 5 Signs of a Rebound

Brazil’s government has taken a number of steps to jump-start growth in its economy and ETF. This now includes slashing interest rates back to a record low.

In order to spur growth in Brazil’s economy, the Central Bank has slashed interest rates yet again. The bank’s monetary policy committee, known as the Copom, voted unanimously to cut the so-called Selic rate to 8.75%, says Fernando Exman for Reuters. Now the country will wait and see how the economy will react to the cuts.

Stephanie Hanson for Council on Foreign Relations reports that analysts agree that the country has the potential to produce many agricultural exports, as no other country has as many untapped resources and vast open land. Other positives seen:

• Sound economic management has reduced inflation and attracted foreign investment
• A stable currency, the Brazilian real
• Its population of 200 million is becoming a strong consumer market
• There’s tight regulation on banks
• Brazil’s banks are working to solidify the economy to make it less sensitive to market fluctuations, both globally and locally

• iShares MSCI Brazil Index (EWZ): up 63.9% year-to-date

Comments

[kiwi101:]

Up 63.9% YTD....take some profits....duh!

Jul 27 09:14 AM

[fe02:]

Why isn't Vale doing better?

Jul 27 09:44 AM

[Gravity404:]

I think VALE is being held back from the still open negociations with the Chinese on ore prices and the unknown affects of the acquisition rumors, specifically mosaic.

VALE is a great long term buy right now. The management is young, smart and agressive. Pretty soon, they will be major players in anything that comes out of the ground - potash, nitrates, lithum, even oil.


On Jul 27 09:44 AM fe02 wrote:

> Why isn't Vale doing better?

Jul 27 09:59 AM

[David Spence:]

2 words, cup & handle

Jul 27 03:11 PM

[TimothyI:]

Huge cup and handle, breakout with increasing volume. Half now, half on possible retest. Target in $85 range. Weaker dollar makes this more likely.

Aug 04 09:34 AM