VanEck Vectors Brazil Small-Cap ETF
Dump the MSCI Brazil Index (EWZ) for a hedged option, avoid the FX risk (Part 2)
Continued from Part 1 The Brazilian real has depreciated over 10% since mid-May, and will likely just get worse The U.S. dollar is likely to strengthen into Q3 2013 for several reasons. The first reason is that the tapering consensus is that the Federal Reserve will start ramping down its bond buying program around September. This will […]
Why Brazil’s equity market keeps dropping (Part 1)
Several 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. Social unrest: Why Brazil’s equity market […]
Why the services sector in Brazil continues to expand, but slowly
The Business Activity index (the key index for the Services PMI) remained unchanged, at 51.0. While Transport and Storage reported the fastest growth, the expansion was evenly mediocre across most of the sectors surveyed.
Why has Brazil’s growth slowed in recent years?
Brazil, a $2.5 trillion economy, is the seventh largest economy in the world. Brazil exports commodities such as iron ore, cotton, and coffee.
Brazil unemployment steadily decreasing
Unemployment may be a lagging indicator, but Brazil’s steady unemployment downtrend is greatly reassuring that the economy has a solid base. Unemployment is a basic indicator of the economic performance of an economy. A low is a basic requirement for a country to achieve its economic growth potential. In the case of Brazil, unemployment has […]
Brazil consumer confidence levels off after sustained decline
Consumer confidence in Brazil seems to have leveled off after several months of decline, showing that the current situation has improved. The consumer confidence index, published by the IBRE in Brazil, posted a minimal decline of 0.4%. The value comes after six months of consecutive declines and a flat reading last month. The index is […]
Dump the MSCI Brazil Index (EWZ) for a hedged option, avoid the FX risk (Part 1)
The Brazilian real has depreciated over 10% since mid-May, and will likely just get worse Over the past three months, the MSCI Brazil Index (EWZ) has fallen 16%. The index is a dollar denominated index of the Brazilian equities market, so it’s subject to foreign exchange fluctuation. During the past three months, the Brazilian real […]
Political Tensions in Brazil: Former President Lula’s Conviction
On July 13, 2017, Brazil’s former President Luiz Inácio Lula da Silva was sentenced to ten years in prison for graft.
Political Unrest Impacts Brazil’s Business Confidence in June 2017
The Industrial Entrepreneur Confidence Index in Brazil (FBZ) dropped to 51.9 in June 2017 compared to 53.7 in May 2017, reaching its lowest level since January 2017.
What Brazil’s Job Growth in May 2017 Could Indicate for the Year
The Brazilian (BRZU) economy added ~34,250 jobs in May 2017, making it the second consecutive month of job creation in 2017.
Will Rising FDI in Brazil Help 2017 Market Performance?
FDI (foreign direct investments) in Brazil picked up in the second half of 2016 in spite of a slow economy, impeachment of the president, political crises, and corruption scandals.
Opportunities Abound in Other Emerging Markets
Brazil’s (BRF) new government is eager to implement structural reforms to strengthen fiscal responsibility, and the central bank is likely to follow suit.
Headwinds Are Affecting Many Emerging Markets
Strong investor interest in emerging market debt (EMLC) (HYEM) has continued despite adverse political and economic issues in some countries.