Buy The F**king Brazilian Political Crisis Dip

Nothing says “go all in” on Brazilian stocks like the one of the biggest equity market drops on record following yet another political crisis… and that’s just what investors did.

Second only to the collapse surrounding Lehman’s branruptcy, EWZ (the Brazil ETF) crashed over 16% last week (before rebounding)…

But it appears, the political crisis around President Michel Temer couldn’t have come at a better time for the U.S. exchange-traded fund that invests in Brazilian stocks. The ETF had gone more than seven weeks without any deposits as investors questioned whether the equity rally had gone too far. But the 16 percent plunge on Thursday eased those concerns, and investors added $345 million to the fund, the biggest single-day inflow since Jan. 6, 2011…

Pent up demand?

It seems not, as while the Real is bid, Brazilian stocks are still languishing…

Despite headlines that Temer’s court hearing had been delayed today… stocks saw no love to end down 1.5%.

This post originally appeared on Zero Hedge

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