Macro Tsimmis

intelligently hedged investment

BUY MSCI Brazil Index (EWZ—again)

Posted by intelledgement on Wed, 06 May 09

The strategic rationale for being long Brasil has not changed since 2006 (when we first initiated that position). Tactically, we dropped the position when we entered the storm shelter last year. We are reinstituting our position here not because we think the storm has passed, but because while in the eye of the hurricane here, the market is making a serious move northwards and—just in case we are wrong about this recovery having legs—we are protecting ourselves against that risk.

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