To understand the importance of selling U.S. Index Funds to buy iShares MSCI Brazil ETF (EWZ) we are posting a chart of the iShares MSCI Brazil ETF (EWZ)/S&P 500 (SPX) Ratio.
The EWZ/SPX Ratio is up by 7.02% this month (not including EWZ's $0.76 per share cash dividend paid this week).
EWZ has been strongly outperforming the S&P 500 for three straight months yet the ratio remains at only 0.007379.
In December 2009, the EWZ/SPX Ratio hit a high of 0.073071 or 9.90X the current ratio.
EWZ will rise due to the same market forces and economic factors that will cause gold stocks to do well... but we consider EWZ to have much more upside than Vaneck Gold Miners ETF (GDX) plus we love EWZ's dividend.
Our biggest profits will be made on the highest quality gold exploration stocks including the #1 best gold exploration stock Augusta Gold (TSX: G).
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President owns a position in EWZ. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
