Ishr Msci Braz Discussion Threads

[valuehurts] 07/6/2023 12:35

Moving on up. Just got to wait till USD goes into weakening cycle.

[j777j] 06/1/2023 07:29

Brazil is the cheapest stockmarket in the world.

Young population

Massive natural resources.

This is a good way to get exposure


Plus pays out chunky dividends

[valuehurts] 06/1/2023 00:45

Bought a fat chunk of this today. Anybody home?

[steve73] 02/8/2017 08:03

Recovering again now but not helped by a stronger GBP... and we're still at a slight discount to NAV.

Is anyone else holding these?

[steve73] 18/5/2017 12:13

Anyone any idea what's caused the drop here?

this...?



drop here looks a bit harsh though.

[steve73] 05/1/2017 05:23

Seems to be back on the road to recovery again.

I saw a recent report - can't remember where or links - that suggested that Brazil is expected to be one of the few emerging market regions that is expected not to suffer too much under Trump's "make 'murica great again" campaign.

[gingerplant] 26/10/2016 09:14

Value H / Steve73

I also did very well here ... eventually; it took a lot of patience and resolve in buying when everything looked bleak. On a similar basis, what about Greece? It doesn't get much more contrarian.

FWIW, I bought some GRE at €.73. the Athex 20 (Greece's top 20 co.s) is now on a tiny P/E and a hugely healthy discount to assets, see; hxxp://moneyweek.com/investing-in-greece-buy-while-its-still-cheap/ from over a year ago, since when it's a further 17% down. This one may also test your resolve and patience though.

[steve73] 26/10/2016 08:59

Well done vh... you have done very well...

I've been well away from any investing until mid this year, and only just had Brazil brought to my attention. It's been trending strongly with the oil price, yet the fund is only about 15% directly invested in Energy. Hopefully if OPEC holds it will allow the entire Brazilian economy to strengthen much further.

[value hound] 26/10/2016 08:49

Well I was lucky as I bought really close to the bottom, so you tend to have a different view of things - but good luck from here.

[steve73] 26/10/2016 08:36

LOL - I only just bought last week....Sorry if I hope you were too early..
I was thinking of creating a new header if there was enough interest

[value hound] 26/10/2016 07:47

Steve73 - I was until I sold last week FWIW.

[steve73] 26/10/2016 07:37

Anyone else following this nowadays? It's enjoyed a very strong 2016 so far.

[strollingmolby] 27/8/2012 13:45

IC feature this week on Brazil:

[praipus] 18/7/2011 10:42

Nassim Taleb thinks Brazil is robust:

[strollingmolby] 25/11/2010 15:53

FACTSHEET


TOP TEN HOLDINGS & SECTOR ALLOCATION

[luderitz] 25/11/2009 16:10

Well, well, these have had a terrific run since the turn of the year, wonder if there's more to come?

[schober] 23/1/2009 10:39

interesting comment
January 13, 2009
OECD: Country Composite Leading Indicators, Brazil Only Country Whose Prospects Remain Relatively Stable

[warala] 28/5/2008 23:14

Looking good for tomorrow.Maybe plus&1.50.

[warala] 25/5/2008 21:16

Noted and recordrd.

[sheeneqa] 24/5/2008 18:17

Dear A Letter Reader,

Oh how the tables have turned for Brazil. Why, back in the 1980s Brazil was defaulting on its debt and Brazil's currency, the real was the laughing stock of the whole currency market. For currency investors, the real was as speculative as a penny-stock.

Roll the hands of time forward to today and it's a whole new story. Savvy investors like Warren Buffet are holding the Brazilian real. Why in the world would he hold a currency from a country like this?

Well it's no secret that natural resources have been enjoying a bull-market for a while now and according to Jim Rogers we've still got a long way to go in this commodity boom.


Hate These Sky-High Food Prices?
You Wouldn't If You Owned Brazil!

Brazil is a commodity rich nation. The largest South American country is also the world's largest producer of iron ore, coffee, and sugar (in fact, while the entire world struggles to pay for US$127 oil, Brazil has managed to cut their energy costs by mass producing sugar-based ethanol). Brazil is also a major exporter of soybeans, pork and beef. So as commodity prices continue to rise all over the world, Brazil is literally cleaning up.

Honestly, this is fairly typical. Whenever any shock hits the markets - whether it's a famine, hurricane, war, or market crash - some asset class, company or country always benefits. As my colleague Mike Burnick likes to say: there are profit opportunities found on the flip-side of every crisis! In this case, Brazil is in one of the best places to benefit from these worldwide food shortages, and rising commodity prices.

In fact, it's not just food products and iron ore that they export...the Brazilian's just discovered the largest oil field in the Western Hemisphere since the 1970s. So Petrobras, the state owned oil company, is looking pretty good also.

Money is flowing into Brazil from literally all over the world. They're not just dependent upon the United States to buy their goods. In fact, China, Asia, and Europe are huge customers of Brazil. That's why the slowdown in the U.S. hasn't even touched Brazil. In fact, their economy expanded 6.6% at the end of last year - while the U.S. slowed to just 0.6%.

If that wasn't enough, Brazil just received the coveted "Investment Grade" rating from S&P last month. As a result, a fresh pile of institutional cash is flowing into Brazil right now - and delivering another big boost to Brazilian share prices.



One Investment Grade Rating is Great,
But Two - Phenomenal!
It's rumored that Brazil may receive yet another investment grade rating coming from either Moody's or Fitch in the coming months. If that happens, yet another tidal wave of money will pour into Brazil's stocks, real estate, bonds, etc.

Usually when you know money is heading towards a country, you have to cherry pick specific index funds or invest in well-positioned stocks to benefit. But I have a way you can invest in Brazil, even if you have no idea where this investment money is heading: Their currency, the real.

Let me explain. In order to buy Brazilian stocks or bonds, you're going to have to buy the currency first. Same thing when buying their real estate - you'll need the real to close on properties.

So any way you slice it, Brazil's currency will benefit from its booming economy. Some investors argue the "B" of the BRIC nations is already too overbought. It's not.

Yes, the Brazilian real has climbed 22% over the last 12 months - more than any of the other top 16 currencies of the world. But I still think this nation could soar even higher. Here's why: Not only is the second round of money about to hit this country but also Brazil is investing in its future.


Making an Investment in Your Own Future

Brazil is already taking steps to ensure they continue prospering. In fact, on May 12th, Brazilian President Lula announced tax cuts for 25 industries. That will stimulate growth. But it gets even better. They are going to give billions of dollars in government loans to help their exports cope even more with the rising currency prices.

As of this writing, the Brazilian government has already announced US$12 billion in tax cuts. Plus, they're giving 10 times that amount to finance new machinery and infrastructure over the next three years.

Their newly formed Brazilian Sovereign Wealth Fund will also aid Brazilian companies reach overseas and bolster their growth. But wait, it gets even better....

Brazilian firms are also investing heavily in consumer electronics, aerospace, bio-fuel, software, and medicines. So Brazil will NOT be a "one hit wonder;" prospering only during the commodity boom years. No they're taking steps now to ensure they will be a viable economy long after the "resource boom" is over.

For instance, you'll see over 40 billion reals (US$24.3 million) spent on technology by 2010. Much of this technology is going to rush into these sectors: agribusiness, nanotechnology, biotechnology, biodiesel, perfume, oil, and gas.

Brazil's economy could continue to prosper for years to come. This is why a guy like Buffet can comfortably apply his long-term buy and hold strategy in a place like this. He sees how bright Brazil's future is, so he's buying the real.

I would recommend you also consider this booming economy when you're building your own diversified currency portfolio.

SEAN HYMAN, Currency Analyst

[warala] 20/5/2008 16:16

Yes its the oil and commodities of Brazil that will send it forward.

[dasv] 20/5/2008 15:25

I don't know what Buffett is thinking. I wish I did. But I continue to see strength in emerging markets and evidence of weakness in the UK, US and some parts of Europe.

[warala] 20/5/2008 15:02

Thanks Dasv.But Buffett has also said recently "You aint seen nothing yet.I dont think we are half way or even a quarter of the way through the impact on the general economy". So is he saying Korea / Brazil will however do well?

[dasv] 20/5/2008 14:09

Warren Buffett is also keen on Korea. Apparently currency is undervalued and population is positive about investing in the stock market there. There's also Ishares MSCI Korea if you want to track their stock market. [edit - ah MSCI IShares Korea is IKOR - apols]