Why Brazil’s Stocks and Funds Like the iShares MSCI Brazil ETF Are Crashing Today

Against projections that conservative rival candidate Flavio Bolsonaro would prevail, on Sunday, left-leaning Luiz Inacio Lula da Silva was reelected as the South American nation's President for a fourth (albeit non-consecutive) term, defying recent right-leaning election results in nearby nations like Colombia, Peru, Chile, and Bolivia. It's not just pro-capitalism Bolsonaro's election loss that's behind the bulk of today's selling, however, that's dragged the broad-based iShares MSCI Brazil ETF (NYSEMKT:EWZ) down nearly 23% today.