I have been reading a lot about the problems about Brazil and China but can someone go more in depth about them? I am looking to invest some extra cash in my Roth (about 700 every 2 weeks and have some free trades that will expire) and wondering why these plays aren't a good idea
- I have read about the political instability, rising inflation, increase in government taxes and lower commodity prices affecting their economy. Can someone explain though why the current valuations of ETFs such as EWZ that are setting new 52 week lows almost daily are bad trades considering they haven't been this low since the financial collapse. Also, with the World Cup and then the Olympics coming up, how will that affect their market? Will the building of infrastructure make them a good long term trade? Will investing in companies like Ambev be smart to take advantage of all the increase demand during the next few years?
- I have been looking at Sinopec lately and how it is at lows that haven't been seen since 2010. It pays a monster dividend. What separates Sinopec with the big oil companies of the west? They seem to be expanded their oil ventures and long term, how low can oil get? Also, China Mobile, they are trading near a 52 week low, have a P/E at 9.7 and pay a 4+% dividend
This post was edited on 6/25 at 9:12 pm