EWZ is Far More Than An "Anti-AI Market" like JP Morgan are Calling it
Hello everyone! Today i want to share some trading ideas with you!
1
Brazil $iShares MSCI Brazil ETF(EWZ)$ is far more than an "anti-AI market" like JP Morgan are calling it.
It wins in an AI bull market and as a hedge against an AI bull market.
People are massively underestimating how physical the AI buildout is.
And people are also massively underestimating how much renewable energy, graphite, and rare earths Brazil has for this AI buildout.
Bullish AI -> Bullish Brazil.
Renewables: $EBR
Rare Earths: $USA Rare Earth Inc.(USAR)$
Broader: $Vale SA(VALE)$ / $Petroleo Brasileiro SA Petrobras(PBR)$
And then JP Morgan nicely explained the hedge side of the argument too.
Anti-AI -> capital rotates out of US -> capital rotates to cheaper emerging markets like Brazil that trades at 9x earnings.
Personally long $Nu Holdings Ltd.(NU)$,$MercadoLibre(MELI)$,$USA Rare Earth Inc.(USAR)$
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