Olympics as an Investment Theme

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.
  • Etc.

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.”

Invest away.

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