Gold Pushed Higher by Carry Trade and Capital Market Tsunamis: The Market Oracle:: "The value of futures contracts held this month by hedge funds and traders betting against the $ was a record $33.9 billion more than contracts that profit from a gain. Pacific Investment Management Co., which oversees the world's biggest managed bond fund, is selling dollars against the Brazil Real, Mexican Peso, Korean Won, and Singapore $. 'When we think about currencies on a three-to-five-year basis we're very bullish on emerging markets versus the U.S. dollar,' said Pimco. 'That view is only reinforced when you look at interest-rate differentials.'"
Norton's comments: It follows that investments in Brazil (check EWZ, PBR, UDN) will benefit from Real continuing appreciation against the US Dollar. Additionally, even without inflation, Brazil's forecast GNP growth is among the best of the emerging markets.
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