From Seekingalpha · Ian Bezek · · 50s
Brazilian Small-Caps ETF Plunges 35% After Election Shock
Brazilian small-cap ETF drops 35% Monday as election surprise triggers panic, analysts say reaction is overblown.
In brief
Brazilian small-cap ETF drops 35% Monday as election surprise triggers panic, analysts say reaction is overblown. The iShares MSCI Brazil Small-Cap ETF fell 35% Monday after Brazil's election surprise, but analysts say the drop is overreacted. Originally reported by Seekingalpha.
Brazilian Small-Caps ETF Plunges
The iShares MSCI Brazil Small-Cap ETF plunged 35% Monday morning after Brazil’s run-off election surprise.
Analyst Says Reaction Overblown
Ian Bezek, Investing Group Leader, believes this is an overreaction and that Brazilian equities can perform under the current government's administration.
ETF Trading Attractive Entry Point
The Brazilian small-cap ETF now trades around 6 to 7x earnings and below book value, with underlying companies capable of 10% annualized growth.
Short-Term Headwinds Expected
Ian Bezek sees forced selling and currency headwinds persisting short-term but views EWZS as an attractive long-term entry point for patient investors.
The key point
The iShares MSCI Brazil Small-Cap ETF fell 35% Monday after Brazil's election surprise, but analysts say the drop is overreacted.
