Despite a 46% gain since adding iShares MSCI Brazil (NYSE: EWZ) to his portfolio, global expert Keith Fitz-Gerald still sees upside potential. Here's the latest from Money Map Reporter.
"History tells us that the best gains come to those who have the courage to buy undervalued companies in the face of extreme pessimism – and that sounds a lot like right now. So while we may not be at the very bottom, we are nonetheless pretty darn close.
"In times like these, when the market looks like it's close to a bottom and global economic conditions appear to be easing, we believe the best strategy is to have a core position of solid companies with global growth opportunities, good cash flow, and services that will be necessary coming out of the current global economic situation.
"One such position is iShares MSCI Brazil. As long as the current trend toward easing credit markets continues, I believe we'll continue to see strength in in this ETF, as its holdings are tied to global growth.
"Brazil is one of the best-positioned countries to prosper from a rebounding global economy because of her energy, resources, and financial sectors. Demand from China alone could dramatically improve the balance sheets of Brazilian companies.
"Add to that the recent deepwater oil field discoveries by PetroBras which represent 27.46% of EWZ's holdings, and you can see why we like the prospects for Brazil. In addition, we would note that the fund is currently yielding 5.71%. We continue to recommend purchase of the ETF."
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