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Why Brazil’s equity market keeps dropping (Part 1)

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Brazilian Equity Market 2013-07-07Several negative factors have come combined to cause a steep drop in the equities market

Over the past month, the main Brazilian ETF, EWZ, has dropped 20% in value. Below is a recap of the negative chain of events that led to this fall and how likely the market will recover.

Several of these factors alone would cause a significant movement in the markets, but since they’ve coincided in June, the market has plummeted like a rock. While the list isn’t exhaustive, these are the key factors we believe have gathered significant investor attention and raised the level of volatility in the market.

Read on to explore each item in detail in Why Brazil’s equity market keeps dropping (Part 2).

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