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KamranatUCLA (29.77)

U.S. versus China, winner is Brazil

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November 04, 2009 – Comments (8) | RELATED TICKERS: BLTI , ACI , GTE

I really think U.S. and China are in a gridlock. U.S. has the technology and lots of resources. China has tons of people and excellent foreign policy (You don't see Chinese in Afghanistan) that enables them to use the whole world's resources from Iran's resources to Russia to South America and Africa.

In the meantime I think Brazil will grow in the next 10 years immensly. I am not saying Brazil will overtake China or U.S.  no NOT AT ALL. But I think Brazil is in a good position to become like a Japan of South America.

Several reason for that. Brazil is a big country, has very nice ports. Has nice beaches that attracts tourism and can attrack global tech companies. They have a pretty good infrastructure and I think their government has finally got it right ( I took a course of Brazilian History at UCLA and I think Brazialin leaders messed up big time in the past). Brazil is relativly close to the U.S., has discovered oil in their Seas...it's just so much going nicely for them that it's hard to write that all here. And their transportation is pretty much sustainable and oil-price independent ( they use alcohol for their cars).

I think investing in U.S. or Chinese companies won't pay back as much because both countries are involved in crazy monatry policies, so even if your stock goes up the devaluation of dollar or Chinese money will deplete your gains.

Brazil, I think is a good bet. I think not only their stocks can go up but also their money.

Can someone tell me the idiot's guide to invest in foreign currency. I want to put some money in Brazialian Money. I am not rich and actually don't have much money. I want to invest maybe like $500. That's all I have, so I don't want no fancy brokerage...something cheap and reliable. If you know please respond.

Thank you.

8 Comments – Post Your Own

#1) On November 04, 2009 at 5:29 AM, devilzadvocate (95.83) wrote:

Buy stocks of PBR :)

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#2) On November 04, 2009 at 7:48 AM, dudemonkey (92.06) wrote:

I don't think there's going to be a good way to make that kind of currency investment work out.  The fees are too high so it makes more sense to me to buy stock in one of Brazil's outstanding companies.

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#3) On November 04, 2009 at 7:48 AM, dudemonkey (92.06) wrote:

Although I wouldn't buy in at today's prices, FWIW.

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#4) On November 04, 2009 at 10:29 AM, kaskoosek (99.76) wrote:

500$. I do not consider this amount as money.

Lever it up 400 times and now we are talking.

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#5) On November 04, 2009 at 10:45 AM, Deepfryer (93.68) wrote:

I don't know anything about currency trading.

If you're looking for stocks and etfs, check out NETC, SBS, EWX, and BRF for starters. There are a ton of good investments in Brazil.

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#6) On November 04, 2009 at 1:07 PM, cdulan (94.30) wrote:

The Brazilian Real is a little overpriced right now.  I would wait for a dip to get in.  Any time you invest abroad, you incur company risk and foreign currency risk.  You must know the difference and what it means before you put your money there.

You should probably start with the general index, EWX.

But I like SBS too.

To answer your question, I have a blog post that gives reasons to invest in Brazilian Real and where to do it too.

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#7) On November 04, 2009 at 3:58 PM, Deepfryer (93.68) wrote:

Sorry I meant EWZ, not EWX. Although, EWX is a good one too :-)

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#8) On November 04, 2009 at 4:13 PM, KamranatUCLA (29.77) wrote:

this is what i found about everbank on line...i don't know if i can trust them with my $500 hahaha

On April 24, 2009, a class action lawsuit was filed against EverBank in the Superior Court of California on behalf of purchasers of the bank's Icelandic Krona foreign currency denominated "CDs". The lawsuit alleges that EverBank, against the instructions of its customers, closed the "CDs" at a commercially unreasonable exchange rate far below those published by financial institutions and currency exchanges, resulting in a loss of much of the "CD" purchasers' principal.[6]. On July 8, 2009, EverBank's Executive Vice President, Frank Trotter filed a declaration to the court in response to the lawsuit. In the declaration, Trotter admitted that a total of 225 investors lost $4,007,662.81 as a result of Everbank's forced closing of their Icelandic Krona denominated "CDs". That averages out to a loss of about $18,000 per account.[7]. Trotter went on to disclose that when investments in all of EverBank's WorldCurrency CDs (including those denominated in foreign currencies other than the Icelandic Krona) are taken into account, investors suffered a net loss amounting to almost $50,000,000 over the past four years.[8].


EverBank answers its phones with the tagline, "It's a great day at Everbank".

 

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