Brazil

Bespoke and Bank Credit Analyst both had post on Brazil today. Standard and Poors awarded Brazil an investment grade rating for their government debt. This rating will allow institutions limited to investment grade bonds to finally participate in the bullish story. The extra money being invested there will lower the costs of government borrowing and contribute to a virtuous circle of a stronger currency and smaller reduced cost for government.

This is a tremendously bullish development and the market has rallied sharply. If the political cass can avoid screwing this up (no sure thing) Brazil could have a very sustained trend up.