With the U.S. Dollar screaming higher, emerging markets have been getting hit this week.
As you might expect, so too has my long-term investment idea of CPL, the Brazilian utility which I have been writing about for a while now.
At issue is whether the long-term bull thesis remains intact. Recall that you are getting a decent dividend here, in effect getting paid to wait for the stock to appreciate.
In addition, the dividend should help buttress against the inevitable downdrafts for any long-term investments–Of course it is no substitute, per se, for price appreciation. But it sure does not hurt.
In this case, I am looking to see if the stock can survive the onslaught of a strong Dollar.
A weekly close below $17 would have me turning a bit cautious. But $16 is the big level below to keep the major bottoming thesis intact.
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What is your major bottoming thesis?