More "V" signs (4)

In dollar terms, Brazil's stock market is now up 205% (that's a three-bagger) from last year's lows. Not only has the stock market rebounded, but the real has rebounded as well. Brazil's currency is tracing the mirror image of the dollar; as the dollar closes in on its prior lows, the real is closing in on its prior highs. This is a stunning recovery by any measure.

News reports earlier today floated the possibility that emerging market economies might impose controls on capital inflows in order to try to stem the appreciation of their currencies. Brazil's president Lula instead took the high road, saying "the government has no plans to tax capital inflows as a way of preventing the country's currency from strengthening further." Very good news for Brazil.