The country may be crisis-hit, but traders are betting on calmer times ahead
There may be ongoing economic turmoil in Brazil but that hasn’t stopped traders betting on calmer waters in the future.
According to a Bloomberg report, volatility for the iShares MSCI Brazil Capped ETF surged to its highest levels since the end of 2014. However, many see this period as temporary – and with speculation that a change of government will lead to reforms, many analysts are suggesting that volatility will slump by nine per cent.
With concerns over the country’s worst economic slump for 100 years being replaced by rays of light, there have been significant price fluctuations in the ETF since the end of the year. Now it is widely suggested that President Dilma Rousseff’s administration is coming to an end – and that this will have a positive boost on the economy.
During 2016, the $2.7 billion ETF has been one of the most erratic in the marketplace – reaching its lowest point for 10 years in January before rebounding 55 per cent.
According to a Bloomberg report, volatility for the iShares MSCI Brazil Capped ETF surged to its highest levels since the end of 2014. However, many see this period as temporary – and with speculation that a change of government will lead to reforms, many analysts are suggesting that volatility will slump by nine per cent.
With concerns over the country’s worst economic slump for 100 years being replaced by rays of light, there have been significant price fluctuations in the ETF since the end of the year. Now it is widely suggested that President Dilma Rousseff’s administration is coming to an end – and that this will have a positive boost on the economy.
During 2016, the $2.7 billion ETF has been one of the most erratic in the marketplace – reaching its lowest point for 10 years in January before rebounding 55 per cent.
