Line Break

With the weakness in Brazil the past week, we are going to take this opportunity to begin a long-term stake in Market Vectors Brazil Small-Cap ETF : BRF.

We highlighted this name in the summer under $29 [Jun 2, 2009: Market Vectors Brazil Small Cap (BRF) - a New ETF for Exposure to Brazil] It was a new ETF, so we were not ready to jump in, but it has had a great run, and has enough volume on a daily basis to show others are interested in it as well. Obviously if the dollar corrects in the weeks to come, foreign exchanges will take a hit blah blah blah.

But this just might be our favorite market on the planet right now, and with the stopping out of most of our only-Brazilian position Wednesday, it’s a good place to begin a stake. We’ll start modestly with a 1% stake, and if there is weakness in the coming months look to add – eventually I’d like to make this a large weighting in the fund.

I’d like to be a buyer in scale somewhere in the lower $30s if afforded the opportunity in the months to come. I am not using any sort of technical analysis or “trading” it, we’re wanting to build a core position here for the very long run.

For now, we’ll get started in BRF (NYSE: BRF) with a buy at the open…

Mark is a self taught private investor who operates the website Fund My Mutual Fund; a daily mix of market, economic & stock specific commentary.The origin of the website is to leverage the power of the internet in developing a transparent track record to attract investors for his potential “long/short” mutual fund.