Brazil ETF Tanks After Country Imposes Foreign Investor Tax

brazil

Did you dabble in the iShares MSCI Brazil (EWZ) ETF after Rio won the bid for the Olympics, and you read a million articles about how sound the Brazilian economy was?

Well, today you just got dinged by an emerging market making a classic emergin market move after the Lula adminsitration announced that it would impose a foreign investor tax to ward off overheating and speculation.

And after rallying 1% during the day, EWZ promptly tanked 4% after hours. Whoops.

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