EWZ Volatility - Fasten Your Seatbelts

Summary

An increase in demand for emerging markets could be a positive catalyst for Brazil's FX rate and its equity markets.

Throughout December, EWZ's 50 Day Moving Average volatility should continue above 2%.

Volatility does not have to be your enemy.

This year has been a volatile year for those who invested in the iShares MSCI Brazil Capped ETF (EWZ) and the Direxion Daily Brazil Bull 3x Shares ETF (BRZU). Most of this volatility is a result of two main events: the Brazilian Truck Driver strike and the Brazilian Presidential elections. The Brazilian Truck Driver strike was one of the principle reasons that I decided to write the series on the price multiple for the IBrX 50 index. Initially, I began writing this article with the intent of publishing this month's price multiples for the IBrX 50 index, but this portion of the piece turned out to be larger than I planned. In the next day or two, I will publish the price multiples article, so please follow me via Seeking Alpha.

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