BRIC Woes Move From China To Brazil (GOL, PBR, VIV, VALE, EWZ)

Investing

Published: March 6, 2012 11:50 am

Last Updated: April 27, 2020 6:08 pm

The growth engines of the world are called the BRIC nations for Brazil, Russia, China, and India. What happens when growth rates are just not as robust as they are supposed to be. Monday was dogged by reports of sub-8% GDP growth in China. Tuesday is faced by only 2.7% growth in 2011 from Brazil. When you consider the recent growth rates and the improvement, Brazil should be running at twice that rate. The impact on Tuesday is being seen in everything tied to Brazil:

Gol Linhas Aereas Inteligentes (NYSE: GOL), the airline, is down 4.4% at $7.96 against a 52-week trading range of $5.03 to $14.35.

Petroleo Brasileiro S.A. (NYSE: PBR), or Petrobras, is down 4.6% at $28.26 against a 52-week range of $20.76 to $41.74.

Telefonica Brasil, S.A. (NYSE: VIV) is down 2.5% at $28.85 against a 52-week range of $22.81 to $32.14.

VALE S.A. (NYSE: VALE) is down 6.1% at $23.23 against a 52-week range of $20.46 to $34.74.

iShares MSCI Brazil Index Fund (NYSE: EWZ) is down 3.5% at $66.58 against a 52-week range of $49.25 to $80.23.

Brazil currently has a currency stronger than it can handle and it needs to cut interest rates as well. Other stimulative measures need to come after that, as well as tax reform.

JON C. OGG

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.