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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 411.93-0.4%Dec 24 4:00 PM EST

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To: elmatador who wrote (31474)3/21/2008 5:39:32 AM
From: TobagoJack  Read Replies (1) of 218703
 
just in in-tray from pen pal

quote

BRAZIL
The Brazilian market has rallied sharply over the past 6 years, with the MSCI Brazilian ETF appreciating nearly 1500% during that time period! Investors are heavily overweight this “BRIC” and all those that wanted exposure to this market are already invested. In addition, the country is heavily reliant upon commodity exports. Nearly half of the index is weighted with stocks focusing on things such as oil, coal, iron ore and steel. With a global slowdown now emerging and with demand from China due to slow quite soon, it seems apparent that the market in Brazil is due to fall.

Thomas Birkhold, a currency options trader noted:
I am still looking for a move higher in USD / BRL to 1.74-1.75 with the chances for larger move higher increasing. After all the market is very long BRL assets, and the new tax measures imposed on offshore FI investors, together with external accounts showing some degree of deterioration could make for decent profit taking by a already wounded leveraged community.

unquote
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