I was taking a look at
Brazilian Balance of Payments and what drove my attention was a line called Foreign Stocks Investments. We can see from the graph below that it has increased a lot and is now about BRL 140 billions accumulated (since 1995). It's more than a month of Ibovespa trade!
By the way, that amount enter in the computation of brazilian's reserves?
The graph below shows what happened monthly in 2008. Foreign investment before crash amounted to BRL 78 billions and dropped just BRL 13.5 biilions (-17.5%).
Now foreign investment is currently at BRL 140 billions, much more than before the crash. Nobody can imagine what could happen if a massive "flight to quality" would take place.
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