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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Alias Shrugged who wrote (24091)2/22/2005 2:11:14 PM
From: THE ANT  Read Replies (1) of 116555
 
Mike.I have been in EWZ an index fund and UBB and PBR.I still feel Brazil is cheap but the world economic situation even makes Brazil risky at this point.I hedge some by being in USPIX or RYVNX.A year ago I was telling friends to put half of what they want to invest in Brasil into Brazilian stocks/funds and 1/2 in cash to buy on any substatial fall.I now say 1/3 in Brazil and 2/3 on the sidelines to put 1/3 in on a 10-20% fall back and the other third on a further fall back.If things there dont fall smile and take a modest gain.If they do fall,smile and increase your investment as their interest rates will fall.If you put nothing in Brasil now you may still get a great deal in the future if the world economy goes down the tubes.A very conservative investor might not chase it and be ready if things go bad.
Real estate is the best bet but even there the Brazilian currency could fall 10-20% in a world economic panic,but this would be short lived.There are good English speaking lawyers who can help you buy property down there.IRS is an Argentine real estate co available on the NYSE but I do not know that country as well,and they are less investor friendly,and more politically unstable
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