Ray Hendon

Brazilian Real: Update to the Downside

I still like their equity ETF (EWZ). There is often a disconnect between a currency and equities, and I feel much stronger about the economy of Brazil than I do their currency, at least over the next months. The currency was simply oversubscribed by the carry trade hot money. EWZ has taken its hits lately, as all emerging markets have, but I think this will pass once commodity prices stabilize and they do some test drilling in their new oil fields off shore. But, it's still risky for either investment.