Which country? Ninety percent of the new cars sold in this country are “flex” engines capable of running an any mixture of gasoline and or ethanol. This country also has the world’s largest brewer, world’s largest iron ore producer, and is the world’s largest exporter of coffee, sugar, and livestock. And, is a world leader in corn production, soyabeans and lean hogs. This is quite a resume for one country.
Lessons learned
I imagine at one time or another a “developed” nation were the owner of the above notable achievements. Today, they are the reality of… wait for it, Brazil. Brazil has essentially grown from the ashes of the 1970s to a commodity and agricultural powerhouse. This is important in today’s world as far too many individuals or advisors shun the likes of the emerging markets. Sure, not all emerging markets are created equal and some are more advanced than others. The sad thing is countries like Brazil have learned lessons that the U.S. has not. Following the 1970′s oil crisis Brazil had the smarts to start developing (now using) alternative fuels. The “flex” engines are not new in Brazil they have been around for years. Clearly Brazil learned a lesson in the 70′s and did something about it. Brazil is an energy independent nation unlike most of the developed world which is energy dependent.
ETF Opportunities for Brazil
Brazil is a major holding in Many ETFs from the BRIC ETFs (iShare MSCI BRIC Index ticker BKF) to broad based emerging markets ETFs (iShares Emerging Markets ticker EEM). To get direct exposure to Brazil the iShares Brazil ETF (ticker EWZ) is place to go. EWZ is currently well above both the 50 day and 200 day EMA. The 50 day EMA having crossed above the 200 day EMA a while ago. YTD the fund is up over 58% through 7/21/2009.
Chart courtesy of StockCharts.com
Additionally, Market Vectors has recently rolled out a Brazil Small Cap ETF (ticker BRF). This fund is too new to plot on a 50 and 200 day EMA but the fund is up 31% since its inception in mid May 2009.
Disclosure Statement: ETFGPS is a blog that Navigates The World of ETFs. Sustainable Investment Strategies LLC is a Registered Investment Adviser in the State of Maryland, and may hold positions in the ETF(s) listed above. Investors who are interested in money management services may visit the Sustainable Investment Strategies LLC web site.
