EWZ

iShares MSCI Brazil Getting Very Oversold

Weekly Report: what happened at EWZ last week (0408-0412)?

Petrobras: Repeating Past Mistakes, I Don't Recommend Buying Shares

Petrobras is the largest company in Latin America. The company is one of the largest oil and gas producers in the world. I recommend holding shares of Petrobras (NYSE:PBR) despite attractive valuation and strong fundamentals. New management's plans for increased investments and abandonment of international price parity policy pose risks to the investment thesis.

Weekly Commentary: Trouble Brewing In Financial Asset Wonderland

Doug Noland: The Fed's misguided dovish pivot unleashed precariously loose market conditions. He says the market is in the midst of a bubble. He argues that Bubbles can inflate to unimaginable extremes - and then quadruple. Noland says the late-cycle fear of Bubbles is missing out on the reality.

Where We Stand

Dollar Consolidates But Adjustment Is Not Over

Higher than expected US CPI for the third consecutive month drove US interest rates sharply higher and lifted the greenback broadly. The market appears to be catching its breath today, but the shallow consolidation suggests the moves are not over. The dollar has reached nearly JPY153.30. Gold fell by about $18.75 an ounce yesterday, its largest loss in about a month.

U.S. CPI, New Security Initiatives With Tokyo And Manila, Bank Of Canada Meeting

The dollar has been confined to narrow ranges ahead of the US CPI report. The Reserve Bank of New Zealand signaled that it was in no hurry to cut rates. The New Zealand dollar is leading the G10 currencies higher. The Hang Seng and the mainland companies in Asia are leading the region. Gold is consolidating in about $2345-$2360.

FLBR: Exceptional Value Threatened By Lula's Long Arm

Franklin FTSE Brazil ETF (FLBR) offers a strong value profile with a high dividend yield of 9.33% in 2023. FLBR is trading at 1.5x book value and 8x earnings. There are concerns about Brazilian President Lula's interventionist policies towards key sectors like energy and materials. Brazil is Latin America's largest economy and has had an uneven growth trajectory.