You guys think the shanghai market is strong, look at EWZ(ETF for brazil): 2003:116.54 2004: 33.63 2005: 52.66 2006: 43.30 2007(4/30): 12.19 Mexico is also very strong.
Brazil *was* one of the best markets in '03, '04, '05, and most of '06 before the "crowd" heard about it. Most of the time nowadays, the big money is unloading the crap on the bag holders even as it goes up.
You might want to note that last week it took 2.02R$ to buy a dollar, yesterday's close was 1.95R$ to the dollar. Thus in a week you gained 5+% and that is before consideration of fact the real interest rates are easily the highest in the world. Least you think last week "too special" (and it was - for about two months the psychological barrier of 2 to the dollar held, with a lot of help from central bank buying up about 5e9 dollars) go back about 5 years and it took 4R$ to buy a dollar. I.e. except for a couple of months flatting just above 2 to the dollar, it has been a 50+% relatively steady decline in the dollar and real interest highest in the world. I expect in less than a month 1.9R$ will buy a dollar (I.e. another 5% currency gain on top of still highest in world interest rates!) interest rates are steadily dropping and locals are moving money from applications tied to them so Stocks set new record highs almost every day now Up about 1.5% yesterday, when S&P moved the ratings of Brazil's bonds up a notch to BB+. NEXT STEP WILL BE A HUGE BOOST - AS THAT IS "INVEST GRADE" and many new instructional buyers will be buying in Brazil. I am American "ex pat" - Retired and living in Sao Paulo. I bought several Brazilian (and Indian) ADRs 5 years ago. Best is SBS, up 800%, at new high set yesterday and still paying good dividends. - not bad for a water company!