EWZ: Don't Worry About The BRL, So It's All About Your Commodity View

Sep. 07, 2022 8:00 AM ETiShares MSCI Brazil ETF (EWZ), , , 1 Comment

Summary

  • EWZ benefits from a Brazilian monetary authority that is addressing inflation with rate hikes, and a BRL that is also supported by major commodity exports.
  • Brazilian terms of trade are good, and EWZ gives you exposure to the parts of the economy that are the envy of commodity importers right now.
  • Exposures are also recession-resistant. Overall, looks really good, just need to stomach political risks.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »
Brazil fans celebrating goal

Drs Producoes

Published on the Value Lab 1/9/22

The iShares MSCI Brazil ETF (NYSEARCA:EWZ) looks to be a solid and low P/E pick on an economy that has pretty minor incremental FX risk and strong exposures in both a recession and

While we don't often do macroeconomic opinions, we do occasionally on our marketplace service here on Seeking Alpha, The Value Lab. We focus on long-only value ideas, where we try to find international mispriced equities and target a portfolio yield of about 4%. We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. If you are a value-investor, serious about protecting your wealth, us at the Value Lab might be of inspiration. Give our no-strings-attached free trial a try to see if it's for you.

This article was written by

The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.

They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.

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