To: carranza2 who wrote (60677 ) 2/6/2010 1:09:22 PM From: elmatador Respond to of 217857 Amid Recovery, Brazil’s ETF Shows Its Mightetftrends.com February 05, 2010 at 12:00 pm by Tom Lydon After noticing the potential for an asset bubble, investors have been pulling money out of Brazilian stocks and exchange traded funds (ETFs). Nevertheless, Brazil is proving to be a robust economy as both consumption and exports rise. Angel Gurria, Organization for Economic Cooperation and Development (OECD) chief, said that there’s “a danger of asset bubbles in places like Brazil… and we should be careful about that,” as stated in MecroPress. The statement came as investors also noticed the risk and began funneling more than $500 million out of the Sao Paulo stock market in January. [How to Cope with Risk in Latin America.] Brazil’s currency, the real, has also depreciated to its lowest point against the U.S. dollar since Sept. 2, 2009. Brazilians officials are actually satisfied with the depreciation since a stronger dollar helps competition and promotes Brazilian exports. Finance Minister, Guido Mantega, believes that the economy is stable enough to begin withdrawing stimulus measures. With consumption and exports on the rise, the Brazilian government is estimating an economic growth of 5.2% for the year. [What's Going Right for Brazil.] Brazil’s Central Bank may wait till April to start raising rates, report Andre Soliani and Iuri Dantas for Bloomberg. Some traders expected the Central Bank would increase rates in March, which caused short-term contracts to fall recently. The Central Bank has been signaling for a rate increase so as to keep inflation in line. According to the Central Bank’s survey, the median forecast of about 100 economists show that inflation could jump to 4.62% by year-end. The government’s inflation target is 4.5%. For more information on Brazil, visit our Brazil category. ?iShares MSCI Brazil (NYSEArca: EWZ): up 112.4% year-to-date ?Market Vectors Brazil Small Cap (NYSEArca: BRF): up 18.7% in the last three months ?WisdomTree Dreyfus Brazilian Real (NYSEArca: BZF): up 34.6% year-to-date Max Chen contributed to this article. Share this post: Tags: Brazil, Brazilian Real, BRF, BZF, Currency ETFs, Emerging Markets, EWZ, Global ETFs, Latin America Energy ETFs: Oil Industry Expands Its Horizons ETF Q&A: What They Are, How to Use Them Find more articles in the Archives... Subscribe to Our Daily E-mail Newsletter Enter your e-mail address below to sign up for our daily e-mail newsletter, the Daily Market Update. We will never share your e-mail address with third parties. Subscribe to Our RSS Feed Click here to subscribe to our RSS feed Add New Comment You are commenting as a Guest. You may log into: Logged in as Logout from DISQUS Community Page Subscribe by email Trackback URL blog comments powered by Disqus Related Posts Did you enjoy this post? Check out these related articles: ?What’s Going Right for Brazil’s ETFs January 6, 2010 – It is not often that a country has so many things going right. Brazil seems to be fortunate enough to have all the positive factors with little to impede its growth in its economy... Continue Reading » ?Brazil ETF: A Potential Not Yet Realized December 9, 2009 – Emerging market economies, along with related exchange traded funds (ETFs), have shown a swift recovery and growth, for some, is only starting to gain momentum. Brazil is one such... Continue Reading » ?Brazil ETF: How Country’s Leaders Are Stoking More Growth December 21, 2009 – Brazil's economy has been one marked by steady, but slow, recovery this year. Now that a recession is in the rearview mirror, the country has shifted its focus to keeping... Continue Reading »