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August 14, 2005
More Brazil corruption allegations, Sun., August 14, 2005, 7:26 PM
President Reagan once said in one of the great moments of presidential debates, Oh no, there you go again." He could just as easily been talking about Brazil. That's because corruption in politics reared its ugly head yet again.
Traders felt the shock and the after-shock as the Sao Paulo Bovespa undulated wildly from Wednesday though Friday.
The Brazil ETF that trades on the AMEX hit an all-time high of $28.52 Aug-10 (Wed.) at noon; then plummeted "9.2 pct to a low of $26.11 on Friday morning, before rebounding to close the week at $27.02. That's quite a roller coaster.
The Sao Paulo Bovespa (Brazil's major stock exchange) closed Friday at 26,951, after setting a weekly high on Wednesday (same day as EWZ) at 27,606.
But the Bovespa's all-time high was set back five months ago on March 7, at 29,584, which is +7.2 pct higher than the EWZ record. Maybe the little people had an inkling something was going on in the boardrooms? :-)
Whatever. All I know is that the words undulating" and roller coaster" and, unfortunately, corruption" are part of the everyday lexicon of traders in Brazil.
That's not enough to scare me " I think Brazil represents a wonderful opportunity " but then again, some people think I'm a little nuts anyway.
Get it?
Posted by Posted by Bill Cara on August 14, 2005 07:27:29 PM | Category: Brazil