Emerging market volatility was lower across the board last week. Both EEM and EWZ were up just under 1% on the week despite the mixed performance of the US stock markets. With this strength in emerging markets VXEEM dropped over 6% and VXEWZ was down almost 2%. Both curves experienced pretty parallel shifts and also flattened a bit which, when related to equity market index volatility, indicates a potentially more bullish outlook for the underlying over the near term. At least a little more bullish from the volatility players.
On the Brazilian front, there is a pullout section from this weekend’s Barron’s highlighting the potential for investment in Brazil in 2013. EWZ hit a rough patch back in the spring / early summer this year and may be worth a look going into next year.