While clearly a lagging indicator by definition, fund flows are kicking in and momentum for emerging markets remains strong in a world where the U.S. and Europe aren’t caving in.
Brazil has never seen more constructive domestic macro conditions: record low rates, mild inflation, 5.5% unemployment and a government attempting to fix massive bottlenecks in the economy.
Brazil cheered the market last week when second quarter GDP growth implied government stimulus is finally helping the Brazilian economy rebound.
Emerging markets were set for losses of up to 3.0% last Thursday until Federal Reserve Chairman Ben Bernanke saved markets with his comments at Jackson Hole, Wyoming on Friday.
The Labor Day holiday is approaching in the United States. Many Wall Street professionals have been vacationing for a good part of August, and their return is often expected to bolster volume and be a potential catalyst for higher prices — including emerging market ETFs?
The Brazilian government last week announced its largest ever stimulus package aimed at increasing private investment in an outdated transport infrastructure system of roads, rail, and air transportation.
Prominent hedge fund manager Ray Dalio runs Bridgewater Associates, a $120 billion hedge fund. Close attention is paid to his buys and sells, and Dalio’s most recent SEC filing revealed an acute interest in the Brazil ETF.
While the Brazilian economy sure is facing some near-term headwinds, the long-term outlook is good. Given the pounding some Brazilian investments have taken you might think the country is a disaster. It may be time to revisit one such ETF: BRF.