I forgot to mention this in Friday’s dispatch. Get ready to hear a bunch of investment ideas based on Brazil’s 2016 hosting of the Olympics. They’ll go something like this.
- Buy EWZ, the iShares ETF for Brazil. The country’s going to be hot, hot, hot.
- Buy Vale (same ticker), the Brazilian iron ore miner, because the country will need to build all sorts of infrastructure
- Buy Cemex (CX), the Mexican cement company for the same reason.
The folks at Roubini Global Economics estimate that Brazil will spend “$11 billion to host the Summer Olympics.” They go on to say that those funds, “may increase the prestige of the city, as well as provide a boost to tourism and investment. But several studies suggest that the benefits of Olympic glory may not be worth the costs. Much of the investment goes to infrastructure.”