Trader's Daily Notebook: Is a Battered Brazil Worth a Buy?

Prior to Thursday's auction, I'd wager to say 95% of traders had never heard of Brazilian President Michel Temer. Let's be honest, most of us barely have the time to keep up with the silliness that occurs in our own government, let alone in that of Brazil. But all that changed when traders flipped on their screens to find the iShares MSCI Brazil Fund ETF (EWZ) trading 18% beneath Wednesday's closing print. 

Without turning this note into a discussion on Brazilian politics, just know President Temer is accused of bribery. As a result, every stock associated with Brazil opened dramatically lower. And we're not talking about small-cap stocks. Names like Banco Bradesco (BBD) , Banco Santander Brazil (BSBR) , Petroleo Brasileiro (PBR) , Telefonica Brasil (VIV) , Ambev (ABEV) and Gollinhas Aereas Inteligentes (GOL) all lost between 12% and 25% on the day. Even the EWZ, an incredibly popular ETF among traders, lost more than 16%. ...514 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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