Brazilian ETF Keeps Surging as Presidential Elections Looms

Related: Brazil ETFs Breakout as Presidential Candidate Jair Bolsonaro Takes Lead

Regardless of the winner, the International Monetary Fund predicts that Brazil’s economy will continue growth through 2018 and next year. Per an article from IG Markets, “When the International Monetary Fund (IMF) released its World Economic Outlook for 2018 and 2019, it renewed investor confidence in Brazil’s economic growth. The IMF predicted that Brazil’s economic outlook in 2018 would include 2.3% growth in GDP, with a further 2.5% growth in 2019.”

If social media is an indicator as to who may win the election, then it appears that Bolsonaro has the upper hand with the election just around the corner. According to Bloomberg, the candidate’s name is showing up on social media three times more often than Haddad.

Brazilian ETF Keeps Surging as Presidential Elections Looms 2

Regardless of the result, it will be an election that BRZU investors and traders will be eyeing closely. BRZU seeks daily investment results equal to 300% of the daily performance of the MSCI Brazil 25/50 Index, which is designed to measure the performance of the large- and mid-capitalization segments of the Brazilian equity market, covering approximately 85% of the free float-adjusted market capitalization of Brazilian issuers.

Per an article in Global Finance, the likely victor of the election will have to face “unrealistic expectations for the new head of state to solve the interrelated problems of increasing public debt, low economic growth and a political environment unfavorable to reform.”

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