Ishares Trust Msci Brazil Sm Cap Index Fd (NYSEMKT:EWZS)

CAPS Rating: 3 out of 5


Player Avatar marc64 (56.94) Submitted: 1/9/2013 12:48:49 PM : Outperform Start Price: $27.48 EWZS Score: -38.11

I'm excited to watch this bet, and will consider putting hard cash on it. Too bad I only just learned of this ETF, because the recent run-up ensures some time in the CAPS performance doldrums. Long term, I think this one has legs.A small cap ETF gives you broad-brush exposure to an array of small caps propects without having to be a expert/connoisseur. Generally, I'm looking for some reasonably enhanced likelihood that a given selection of small caps can develop into megas. Its a big plus if you can choose from among stocks riding on a fast-growing economy with head room to mature to the point that economic efficiencies can trend them parabolicly. Brazil is on rails to becoming a fully developed economy. As they ramp up to the stability we expect of a developed economy, new, second and third wave opportunities will abound. Lucrative new niches will be created as capital, infrastructure, institutions, political, technical and human resources abound. These opportunities can be exceptionally rapidly exploited by start-ups in Brazil because opportunities that open up in developing economies have already been amply demonstrated in other contexts. The roadmap is already there, pointing the way, and most importantly capital will be easier to secure for these projects. And, of course, we can look forward to new-to-world successes based on local, contextualized innovation and invention. The big risk is political. Can Brazil innovate a political process that ensures that their very large underclass participates in the economic prosperity? If not, success will migrate away.Yep, I like this one a lot, because I think Brazil will abide the political and economic.

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