With the weakness in Brazil the past week, we are going to take this opportunity to begin a long-term stake in Market Vectors Brazil Small-Cap (NYSEARCA:BRF). We highlighted this name in the summer under $29 [Jun 2, 2009: Market Vectors Brazil Small Cap (BRF) - a New ETF for Exposure to Brazil] It was a new ETF, so we were not ready to jump in, but it has had a great run, and has enough volume on a daily basis to show others are interested in it as well. Obviously if the dollar corrects in the weeks to come, foreign exchanges will take a hit blah blah blah.
But this just might be our favorite market on the planet right now, and with the stopping out of most of our only-Brazilian position Wednesday, it's a good place to begin a stake. We'll start modestly with a 1% stake, and if there is weakness in the coming months look to add - eventually I'd like to make this a large weighting in the fund. I'd like to be a buyer in scale somewhere int he lower $30s if afforded the opportunity in the months to come. I am not using any sort of technical analysis or "trading" it, we're wanting to build a core position here for the very long run.
For now, we'll get started in BRF with a buy at the open...
Long Market Vectors Brazil Small-Cap Fund in fund; no personal position