Brazil Stocks Tumble, Real Weakens, Driving Dollar-Based Loss to 26%
Summary
- Brazil’s stock market tumbled and the real also weakened, widening losses for investors in dollar terms.
- A $1,000 investment in Brazilian stocks would now be worth about $835, marking a roughly 16.5% loss.
- After factoring in the Brazilian real’s weakness and converting the investment back into dollars, its value falls to about $740, resulting in a 26% loss in dollar terms.
Forecast Trend Report by Period
Brazil’s stock-market slump was compounded by a weaker real, widening losses for investors measuring returns in dollars.
Cointelegraph reported on October 26 that a $1,000 investment in Brazilian stocks at last Friday’s close would now be worth about $835.
That amounts to a loss of about 16.5% based on local share prices.
Once the Brazilian real’s weakness is factored in and the investment is converted into dollars, its value falls to about $740. That puts the loss at about 26% in dollar terms, meaning investors were hit by both the stock decline and the currency move.
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