The Brazilian BOVESPA Stock Index is on pace for its best one-week performance of 2014 as investors are taking notice of the beaten down country.
A slow grind lower over the last two years has the index down 35 percent from its all-time high set in 2008.
There could be several factors behind the rally that range from buying into an oversold and undervalued nation to the fact the poll numbers are dropping for the current government. One of the country’s largest stocks, Petrobras (NYSE: PBR), which has been entangled in scandals and government issues for years has increased by 11 percent in the last week.
Brazil ETFs
The iShares MSCI Brazil Index ETF (NYSE: EWZ) has gained over six percent in the last week and is breaking out to a two-month high. The ETF is composed of 77 Brazilian stocks with a heavy concentration on the largest companies in the country.
The financials makes up 28 percent, followed by consumer staples at 17 percent and materials at 15 percent. A total of 10 ...
