Looking at Brazil

Recent economic news has been focused on Cyprus and the bailout. According to BBC News

Cyprus is required to find 7bn euros (£6bn; $9bn) in total to get the 10bn-euro EU-IMF loan.Cypriot officials say a state “investment solidarity fund” would issue bonds to raise 5.8bn euros.The other 1.2bn would most likely come from privatisations and by increasing capital gains tax and the corporate tax rate.Cypriots are finding it increasingly difficult to perform everyday financial transactions as cash and credit dries up.The banks are still giving out cash through machines – although with limits, and some are running low. Some businesses are now refusing credit card payments

Focus has also been turned to the role of Russia in bailing out Cyprus. In addition to Euro, Japanese Yen, British Pound, Australian Dollar, U.S & Canadian Dollar I would dip my foot in the Brazilian economy.

Brazil is a member of BRICS group or Brazil, Russia, China and South Africa. BRICS comprises of nations with the fastest growing economies in the world. Brazil is stable with a pretty good size middle class that has significant purchasing power. One option is WisdomTree Dreyfus Brazilian Real ETF Symbol:BZF; currently trading at $19.60. Another option is Market Vectors Brazil Small-Cap Symbol:BRF;  currently trading at $40.81. A third good option is iShares MSCI Brazil Capped Index Fund symbol:EWZS , currently trading at $54.40. A fourth option is iShares MSCI Brazil Small Cap Index Symbol: EWZ; currently trading at $27.69. Out of these four options I would prefer BZF and BRF.

BZF invests in the Brazilian currency which I think is a good thing to have in a porfolio. BRF is good because companies in its portfolio generate at least 50% of its revenues in Brazil. I wouldn’t buy more than two shares of BZF and BRF so that exposure to significant loss will be limited. With economic mess everywhere else why not try a place that has a lot of room to grow. As always keep cost in mind and do your own research. What I just offered are suggestions.

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