iShares MSCI Brazil ETF
Things you need to do today before inflation takes off
So what should investors be doing today? While inflation may take another year or more to get going, it’s not too early to start implementing long-term inflation hedges.
Why Volatility Is Likely to Stay High
With growth projections of most major economies falling, it is likely that volatility will stay elevated.
What Does the Current Supply Outlook Mean for Iron Ore Prices?
The weak demand from China is hurting iron ore prices. The supply side, on the other hand, remains quite strong.
Why Brazil’s central bank is making a hawkish move on the Selic
On October 29, the central bank’s monetary policy committee in Brazil raised the benchmark Selic interest rate by 25 basis points to 11.25%. The increase was an attempt to fight inflation.
How Emerging Market Funds Kept Their Momentum
In the current market scenario, the global markets (ACWI) (VTI) (VEU) are mainly driven by the monetary stimulus provided by the central banks.
Institutional Asset Managers Liquidate Exposure to Brazil ETFs
The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.
Why emerging markets offer value to your portfolio
Truth: Emerging markets offer value. Given that they’re generally growing faster than their developed world counterparts, emerging markets still look cheap by most metrics.
Lower Aluminum Prices Dint Alcoa’s 1Q 2015 Earnings
Alcoa prices its aluminum with a 15-day lag to LME aluminum prices. Its 1Q earnings lost $84 million due to a decline in aluminum prices.
Developing a Strategy for Investing in Latin America Funds
In this series, we’ve reviewed seven LatAm-focused mutual funds (BDERX) in terms of their sectoral changes over the past year and the possible reasons for their performances in 2016.
Will Falling Inflation Accelerate Monetary Easing in Brazil?
Brazil’s (EWZ) economy is showing signs of improvement in 2017, and inflation is hovering around its target rate.
The Argentine Peso Tanks as Government Fulfils the Promise of Freefloat
The US dollar and Argentinian peso currency pair, which is inversely related to the Argentinian peso, rose by 35.6% on December 17, 2015.
Why Brazilian consumers are becoming pessimistic
Consumer expectations surveys are helpful for analysts Consumer expectations drive the trade-off consumers make between spending and saving. Both saving and spending are important for economic growth. More spending means there’s more demand for products, so businesses increase revenues and profits. More saving, though, means banks have more capital to lend out to businesses to […]
Are Commodities a Boon or a Bane for Brazil?
Brazil (EWZ) is rich in commodities. It’s among the top producers and exporters of iron ore, crude petroleum, soybeans, sugar, and meat.
Cliffs’ Asia-Pacific: Will Strong Seaborne Iron Ore Prices Lead to Mine-Extension?
Seaborne iron ore prices have held firm in 2016 and 2017 YTD, despite market participants calling for a downturn.
Investing in Latin America Can Bear Fruit, but Should We?
With commodity prices recovering and major developed markets (EFA) (VEA) caught in the lull, Latin America should see sunnier days ahead.
Your Best Bets For A Good Inflation Hedge Right Now
Although inflation is low, it’s a good idea to have a small amount of inflation hedge in your portfolio. A small inflation hedge adds diversification.
Falling Commodity Prices Impact Brazil’s Trade Balance
Commodity-rich Brazil happens to be one of the important emerging markets (EEM) of the world. However, declining commodity prices are impacting Brazil’s exports.
Why IMF Slashed Brazil’s Economic Growth Outlook in 2017
Economic activity in Brazil (EWZ) has been slow as it tries to emerge from its deep recession in 2016. But consumer and business confidence is improving.
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 […]
Inside the Strong Iron Ore Shipments in January
In January 2017, 40.3 million tons of iron ore were exported from Port Hedland—an impressive rise of 19.0% YoY.
Why the long-term prospects for the BRICS network are positive
Because of its burgeoning autonomy, long-term prospects are positive for the BRICS network as well as the other emerging economies that will inevitably join it.
Is Economic Activity in Mexico Steady despite Trade Fears?
The Mexican economy expanded 0.6% in 1Q17, beating market expectations. Exports and private spending have continued to support growth in Mexico this year.
Investor Sentiment Favors Peru, Chile, and Brazil
Investor sentiment with respect to Latin American economies has definitely been changing since the beginning of the year.
Why Latin American Economies May Be in Trouble
Worsening economic conditions in Brazil and Venezuela hit economic growth in Latin America in the first quarter of 2015.
Spotify Plans to Enter Video Streaming Market
Spotify now plans to enter the video streaming market, according to a May 7 Wall Street Journal report.
Slowing Global Growth Could Keep Commodity Prices Low
Industrial commodities are likely to see lower prices as demand falls with slowing global growth. Yet a decent entry point doesn’t seem to be on the horizon.
Yamana Sells Chapada Mine to Lundin Gold and Raises Dividends
Today, Yamana Gold (AUY) announced that it has agreed to sell its fully owned Chapada mine to Lundin Gold (LUNMF) for $1 billion.
Can Vale SA Reverse Its 2Q17 Performance in 2017?
While Vale SA outperformed peers including Rio Tinto (RIO) and BHP Billiton by rising 24.7% in 1Q17, its performance deteriorated significantly in 2Q17.
Dalio’s Bridgewater Associates Increased Its Holdings in EWZ
Ray Dalio increased his firm’s holdings in the iShares MSCI Brazil Capped ETF (EWZ) in 2Q16.
Brazil’s SELIC Rate Rises to 14.25% yet Inflation Continues to Soar
The Central Bank of Brazil has attempted to rein in inflation by raising Brazil’s key interest rate, also known as the SELIC rate.
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 […]
Assessing BHP Billiton’s Iron Ore Production Target in 1Q16
BHP Billiton’s iron ore production for 1Q16 was 61 million tons, a growth of 7% year-over-year. It plans total production to increase by 6% in fiscal 2016.
Brazil’s Inflation Continues to Soar While Growth Is Stagnant
Brazil (EWZ) is in a state popularly known as “stagflation.” The economy is characterized by low growth, high unemployment levels, and a rising inflation rate.
Cocoa Prices Fall on Rumored Supply Rejuvenation in Ghana
The cocoa futures contract on the Intercontinental Exchange, or ICE, for March delivery fell 4.2%. It settled at $2,810 per metric ton on January 20.
Inflationary woes in Brazil continue despite rise in Selic rate
Investors should watch inflationary woes in Brazil. For the week ended March 15, the IPC-S consumer price index was at 1.49 against an expected 1.42.
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.
Bridgewater Increased Holdings in iShares MSCI Brazil Capped ETF
Bridgewater Associates is one of the prominent hedge fund management firms.
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.
Why Emerging Markets Are Rebounding
Emerging markets (IEMG) (AAXJ) are expected to grow at a healthy pace of 4% in 2016 and see even higher growth in 2017.
Which ETF Can Insulate You from Slowing Global Growth?
EEM stocks are better insulated from slowing global growth. The fund is exposed to global sectors.
Why Is David Rubenstein Optimistic about Brazil?
The Brazilian economy is experiencing contraction due to a fall in commodity prices and the political turmoil. The commodities market is one of Brazil’s most important growth drivers.
Brazilian Stocks Continue to Decline Despite a Pleasant Surprise
Brazilian stocks continue to decline. A good chunk of this decline is due to the corruption scandal surrounding Brazilian oil giant Petróleo Brasileiro.
Walt Disney Finally Closes Its Fox Acquisition
Yesterday, Walt Disney (DIS) finally closed its long-awaited acquisition of most of 21st Century Fox’s (FOX) (FOXA) media and entertainment assets.
Why Morgan Stanley Prefers Emerging Markets over US Markets
Similar to other investment banks, Morgan Stanley (MS) doesn’t have high hopes for US markets in 2019.
Why Colombian Stocks Are Surging in 2017
As the third-largest economy in Latin America, Colombia is expected to recover from its subdued growth of ~2% in 2016—its lowest figure since 2009.
Must-know: Divergence is the new trend in the global economy
Economic growth is strengthening in some parts of the world, while it’s slipping in others. In other words, as I mentioned in a post earlier this week, the major trend in the global economy is one of increasing divergence, rather than slower growth.
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 […]
Investors Should Watch These Economic Indicators This Week
The iShares MSCI ACWI ETF (ACWI), which tracks the performance of the global market, rose 1.1% in December 2017.
An Introduction to Brazil’s Largest Banks, Latin America’s Biggest
Since the ’80s and ’90s, Latin American banks have stabilized. Today, the largest banks in Latin America are concentrated in two countries: Brazil and Mexico.
A Look at Emerging Markets PMI Reports in December 2017
In this series, we’ll analyze the manufacturing and services activity of China, India, and Brazil (EEM) in December 2017.
How Demographics Are the Key to India’s Growth
Demographics are the key to India’s growth story. India’s strength in numbers is one of its biggest advantages over the rest of the world.
Why Did General Motors Spurn Fiat Chrysler’s Overtures?
General Motors may have spurned Fiat Chrysler’s merger offer because Fiat Chrysler’s net profit margins are much lower than GM’s, and its trailing PE ratio is much higher.
Why you should trim your exposure to certain emerging markets
In addition, I’m now advocating trimming exposure to certain emerging markets, such as Russia, and parts of developed Asia, such as Hong Kong (EWH), that will likely be hurt by less liquidity and a stronger dollar.
Latin America Is at a Crossroads
Latin America is at a crossroads. While some economies are faring reasonably well, others are struggling to recover from slower growth since 2013.
Bridgewater: What Are Ray Dalio’s Top Investing Ideas?
Founded by Ray Dalio, Bridgewater Associates’ top sell in the third quarter was the iShares MSCI Emerging Markets ETF (EEM).
Why Chinese stocks are a bargain at current prices
Chinese equities look like a good long-term value considering that it’s still growing faster than developed countries and other EM countries.
Why Brazil seeks diversification
Given the declining competitiveness of its commodity exports, Brazil’s economy is attempting to diversify away from its economic model.
Must-know: What option does Brazil have?
Currently, Brazil’s inflation is already above the 6.5% limit. Higher inflation tends to weaken the currency—the Brazilian real. The real is already following a depreciating trend.
Why Brazil looks expensive compared to the BRIC nations
Looking at the price-to-earnings (or P/E) multiple for Brazil over the last two years, equity shoppers may find that Brazil became a bit more expensive.
Why Brazil’s economy has more than 1 issue
Upswings and downswings in growth in the Brazilian economy are directly reflected in the performance of the iShares MSCI Brazil Capped ETF (EWZ).
Why Brazil’s political landscape is important
The political landscape in Brazil is interesting. Even though it endured centuries of political unrest and discrimination, Brazil now enjoys the political rule of a democratic government.
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 […]
Should you worry about the growing debt in emerging markets?
Overall, emerging markets have debt levels relative to both gross domestic product and income that are still considerably lower than those of developed markets.
Emerging markets are better positioned for the end of cheap money
Most major emerging economies are engaging in various forms of multi-year reform programs in hopes of making their growth less volatile and their financial systems more stable.
Why is Brazil an attractive investment destination?
With a population of 202.72 million, Brazil is the biggest economy in Latin America and the seventh biggest in the world by nominal gross domestic product.
Must-know: Why investors avoid stocks in their portfolio
Why do some investors shy away from stocks? Behavioral finance studies have found that investors are roughly twice as sensitive to losses as they are to gains.
Overview: The must-know characteristics of frontier markets
Looking for the next frontier in emerging market investing? Del Stafford dives into these underdeveloped countries to assess the investment case.
Must-know: Why a retirement crisis is looming in the US
Unfortunately, given the global economy’s aging population and slowing growth, there are two major issues that foretell a coming retirement funding crisis.
BRICS are drifting away from US and European monetary structures
The BRICS countries are slowly but surely drifting away from the 20th Century monetary and political structures setup by the U.S. and Europe, as characterized by Russia’s G8 membership being revoked in the wake of the events in Crimea.
Must-know: The BRICS alternative to the World Bank and IMF
The Summit produced some strong results, not least of which is the formal establishment of the New Development Bank after more than a year of speculative talks.
Key highlight: The new BRICS Contingent Reserve Arrangement
Another highlight of the Summit was the Contingent Reserve Arrangement – a reserve pool worth 100 billion USD to be set aside for liquidity measures and crisis protection – which will work in tandem with the NDB.
Must-know: What an increasing number of dependents means
The U.S. (IVV) would have a lesser number of dependents per 100 people of working age in 2050 than countries like China (FXI), Japan (EWJ), Brazil (EWZ), and South Korea in 2050—it would still suffer from lesser productivity and slower growth.
Must-know: Why international dividend funds give you better value
While stocks offer better value than bonds, I would bring up exposure to international and global dividend funds rather than focus exclusively on U.S. dividend funds, which look more expensive.
Must-know: Investor outlook—emerging market equities
With China (FXI) announcing a gross domestic product (or GDP) growth rate of 7.5% for the second quarter and Turkey’s central bank governor suggesting additional interest-rate cuts, emerging markets seem all set to rise.
Emerging Markets Have Been Leading Stock Returns in 2016
While developed markets have been caught in a lull, we’ve seen emerging markets grab the spotlight. Emerging markets have been leading stock market returns so far in 2016.
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 […]
Key factors that continue to affect emerging markets
Emerging market struggle Aside from the rates hike as well as the effect in inflows and current accounts of emerging markets, there were other factors rooting against emerging markets. China’s slowdown and change of policy Then came the Q2 figure for China’s GDP, which had investors on edge about a hard landing. While the world […]
Must-know changes to frontier market investments
Next month, two countries will officially graduate out of the MSCI frontier markets universe and enter the world of emerging markets: Qatar and the United Arab Emirates (or UAE).
Inflation is tapering down and stabilizing in emerging markets
Brazil (EWZ) and India, in particular, are still struggling with stubbornly high inflation due to supply-side factors. This is partly why Brazil’s central bank is busy hiking rates despite the country’s growth challenges.
Why frontier and emerging markets are separate asset classes
With all the turmoil in emerging markets recently, some investors may be especially wary of investing in so-called frontier markets. Russ explains why frontier and emerging markets are separate asset classes, each deserving of a strategic allocation.
Why you should be cautious when investing in Brazil
Brazil’s gross domestic product (or GDP) was growing at about 6% before the recession hit the economy in 2009, when GDP dipped below zero.
Credit Suisse Is Expecting a Push in Iron Ore Prices on Supply Deficit
As iron ore supply disruptions, at least from Vale (VALE), don’t look likely to go away easily, analysts have started another round of upgrades for iron ore prices.
Can Dalio’s Bridgewater Repeat Its Outperformance in 2019?
Bridgewater Associates, the largest hedge fund in the world, had 303 positions at the end of the first quarter.
Vale’s Production Loss Has Become Its Peers’ Gain—Here’s How
Vale (VALE) published its first-quarter production report on May 8, making its shipment data much clearer.
Are Higher Iron Ore and Pellet Prices the New Normal?
Investors might recall that a major disaster struck Vale (VALE) on January 25, with a dam rupture at its iron ore mine in the Brazilian state of Minas Gerais (EWZ) killing more than 300 people.
Iron Ore Prices Could Be Supported after Vale’s Mine Restart
Even though a Brazilian court gave Vale authorization to restart the Brucutu mine, Vale hasn’t increased its guidance.
Vale: No Production Upgrade despite Authorization to Reopen Mine
On April 16, a Brazilian (EWZ) court gave Vale (VALE) authorization to restart its operations at the Brucutu mine.
Is the Party Just Getting Started for Iron Ore Miners?
Iron ore prices are again touching multiyear highs.
Vale’s Dam Burst Has Yet to Fully Reflect in CLF’s Prices
On January 25, a major disaster struck Vale (VALE) when a dam ruptured at its iron ore mine in the Brazilian (EWZ) state of Minas Gerais.
Why Vale’s Problems Will Likely Continue
Vale’s (VALE) problems don’t seem to be ending anytime soon. Since the disaster on January 25, Vale stock has fallen 13.5% as of March 25.
Disney-Fox Deal Gets Regulatory Nods from Mexico and Brazil
On March 11, Disney received antitrust approval from Mexico’s telecom regulators for its purchase of the assets of 21st Century Fox.
Is Amazon Close to Deal to Buy Disney’s YES Network?
Disney is trying to sell its 80% stake in YES and other regional sports networks to get approval from the US DOJ to acquire Fox’s entertainment and media assets.
Moody’s Downgrade and Potential Fines Weaken Vale’s Outlook
Vale (VALE) could face $7 billion worth of fines in connection with the audit of the mining dam that collapsed.
When Will the Disney-Fox Acquisition Close?
Walt Disney (DIS) is waiting to close the acquisition of most of the media and entertainment assets of 21st Century Fox (FOXA) for $71.3 billion.
What’s the Most Crowded Trade Now?
For the first time in the history of the Bank of America Merrill Lynch Survey, “long” emerging markets (EEM) has been the most crowded trade for February.
Will Iron Ore Breach $100 in the Wake of Vale’s Dam Collapse?
Following Vale’s (VALE) dam collapse on January 25, iron ore prices have been rising.
Vale: More Issues after the Dam Disaster
Vale stock fell ~6% on February 6 after the Wall Street Journal report. Investors should expect more pressure on Vale stock in the short term.
Will Vale’s Second Dam Burst Overshadow Positive Catalysts?
On January 25, another disaster struck Vale (VALE) when a dam ruptured at its iron ore mine in Brazil (EWZ).
November BAML Survey: How Fund Managers Are Playing the Markets
Bank of America Merrill Lynch conducted a survey of 225 investors with $641 billion in total assets under management between November 2 and November 8.
Brazil’s Services Industry Contracted: What’s Ahead?
The final Brazil Services PMI was again in the contraction zone in June after showing some contraction in May.