Today, in an unexpected and unprecedented move, the Brazilian Central Bank lowered the SELIC rate to 12% cutting it by 50bp's citing "substantial economic deterioration". Incredibly, none of the 62 analysts covering Brazil anticipated the move. This could be why Arcos Dorados Holdings (ARCO), my favorite play on Brazil, is selling off a bit today. I believe the global slowdown is overblown and we're already turning around which is why I'm using today's weakness to add to my positions.
This is not a recommendation to buy or sell any securities. DAK was long ARCO at time of publication but positions can change at anytime.
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