Thanks to higher demand for risky assets, and India’s better-than-expected GDP report yesterday, many investors are once again bullish on emerging markets. These nations often have better growth prospects and balance sheets than their developed market counterparts making them ideal choices for investors seeking higher rates of return. Yet, many of these markets are also struggling against high rates of inflation, a situation that is putting pressure on emerging nations around the globe. One nation that has been at the forefront of this battle is Brazil, where the benchmark interest rate is a major-economy leading 12.5%. Whether this significant rate is too high or not high enough, however, will likely be discussed later today when the country’s central bank meets to give its decision on rates. The Bank of Brazil has already raised rates several times this year, from 10.75% to start 2011 up to the current level of 12.5%, [...] Click here to read the original article on ETFdb.com. Related Posts: Daily ETF Roundup: EWZ Sinks On Commodity Weakness, GDX Rises On Gold’s Ascent FBZ: A Better Brazil ETF? IndexIQ Debuts Japan Mid Cap ETF (RSUN) Daily ETF Roundup: UNG Tumbles On Industrial Data, EWZ Rises On Inflation Expectations Daily ETF Roundup: EWZ Up On Inflation Report, VXX Finally Reverses On Jobs Report
Thanks to higher demand for risky assets, and India’s better-than-expected GDP report yesterday, many investors are once again bullish on emerging markets. These nations often have better growth prospects and balance sheets than their developed market counterparts making them ideal choices for investors seeking higher rates of return. Yet, many of these markets are also struggling against high rates of inflation, a situation that is putting pressure on emerging nations around the globe. One nation that has been at the forefront of this battle is Brazil, where the benchmark interest rate is a major-economy leading 12.5%. Whether this significant rate is too high or not high enough, however, will likely be discussed later today when the country’s central bank meets to give its decision on rates. The Bank of Brazil has already raised rates several times this year, from 10.75% to start 2011 up to the current level of 12.5%, [...]
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