Brazil Baby

I HAVE A TWITTER ACCOUNT: ETFplayer, follow me to know when I add new posts.  My goal is 3-4 per week.  Now for the post.

I am very high on Brazil.  A little quick history on the country:

Two decades ago Brazil was plagues by inflation, debt and gross inequality.  Today it is a top ten world economy, has achieved energy independence and is an agricultural superpower.  They are the host of the 2014 Soccer World Cup and the 2016 Olympics.  

-Side note:  South Africa, who hosted the 2010 World Cup is expecting GDP Growth of 9 plus % this year and next.  I think Brazil can do that and more, they also have the additional Olympic Games benefit.   

From 1995-2002 Fernando Henrique Cardoso was President of Brazil.  He was able to control inflation through a stabilization plan and opened the way to turning formerly impoverished Brazilians into consumers.  Since taking office in January 2003, Luiz Inacio da Silva has followed the broad policies established during Cardoso’s presidency.      He also aggressively expanded many social programs improving the quality of life of its inhabitants.

New Brazilian elections will take place on October 31.  Lula’s likely successor is Dilma Rousseff, candidate from Lula’s Worker’s Party.  Rouseff is a strong women who has survived breast cancer.  She looks to continue the economic and social policies of Lula and to expand Brazil’s hydroelectric power production.

So here is the big question?  How do you invest in Brazil to benefit from all the exciting things taking place there?  ETFS BABY!

I recommend EWZ: IShares MSCI Brazil Index Fund.  It is trading at around $80.00 and holds $10.4B in assets and an expense ration of 0.65%.  Look for this fund to take off as  Brazil continues its economic rise.  It looks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Brazilian market.  Its top ten holdings includes Petrobas, the giant state owned oil company, and Itau Unibanco, the largest bank in Brazil.  Don’t miss out on the gains that this fund will yield in the coming years.  Tweet at me with your comments or post them on the blog.  Out.