From Money Morning Staff Reports
The iShares MSCI Brazil Index (EWZ), an exchange-traded fund (ETF) that was the topic of the popular “Buy, Sell or Hold” feature on Monday, surged 9.9% yesterday (Thursday) and is now up 31% in the four days since Contributing Editor Horacio Marquez rated this ETF as a “Buy” in his column.
The shares, which closed Friday at $29.94, gained $3.52 each, or 9.9% each yesterday, to close at $39.09, and have now gained and have now gained $9.15 a share, or 31% since they were recommended by Marquez. They traded as high as $39.70 yesterday.
“Brazil is going to be a global powerhouse,” Marquez said in an interview this week. “Where else can you invest directly in the global oil industry, as you can here with Petrobras (PBR)? In fact, they play in all the key commodity sectors, including iron ore” – a key ingredient in steelmaking, by virtue of the Brazil-based Vale (ADR NYSE: RIO), formerly known as Companhia Vale Rio.
Brazil has $200 billion in foreign-exchange reserves, is conservatively managed, has kept its interest rates well above its inflation rate, has seen its debt get upgraded to investment grade, and recently allowed its currency – the Real – to depreciate, a move that will transform the country into an exporting force, Marquez said.
Marquez is also the editor of the newly created Money Moves Alert trading service.
[Editor’s Note: One of Money Morning’s strengths is ferreting out profit opportunities by observing global money flows. Whether its spotlighting safe-haven markets, or identifying which commodity class is poised for a run to record highs, money flows point the way. Our newest service – The Money Moves Alert – is designed to highlight profit plays for subscribers before they become obvious to the investing masses. Check out our latest report on this profit phenomenon. Marquez is the editor of the newly created Money Moves Alert trading service]
News and Related Story Notes:
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Money Morning Stock Analysis Feature:
Buy, Sell or Hold: iShares MSCI Brazil Index. -
Money Morning Special Investment Research Report:
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Money Morning Special BRIC Report (Part II):
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Brazil.com:
The Real Currency Unit.