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Culture War Roundup for the week of October 26, 2026

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Nobody in S America could ever convince me that Democracy is better than Fascism. You see huge swaths of Brazil vote on ethnic lines. Brazil at this point probably at a minimum needs to be broken into different countries. I don’t see why White Europeans should be governed by a corrupt commie because a bunch of negros voted for it.

In trading sometimes you are better lucky than good. I bought some Brazilian stuff after prediction markets were good for Bolsonaro but before the first round and I’m quite happy today that I dumped them on the big rip after the first round. Now everything I bought is 10% lower than my first buy and I’m wandering if Brazil is cheap enough to buy even with Lulu.

In trading sometimes you are better lucky than good. I bought some Brazilian stuff after prediction markets were good for Bolsonaro and I’m quite happy today that I dumped them on the big rip after the first round

I bought $PAGS which I was also up bigly on, but am now down. I wasn't gambling on the election, I just like the stock.

It's very, very tempting to day trade this. We have to bounce, right? 25% is unreal.

Edit: F it. I put $150k$230k into EWZ. Undervalued index anyway.

A 25% decline is not unreal for a surprise election win by the socialist party in a third-world country. Currency devaluation, property expropriation, excessive taxation, and bans on foreign distributions are all realistic possibilities. The US equity market is not a good reference benchmark for equity markets in other countries.

A 25% decline is not unreal for a surprise election win by the socialist party in a third-world country. Currency devaluation, property expropriation, excessive taxation, and bans on foreign distributions are all realistic possibilities.

Yeah, I think that the default assumption is that the market is reasonably efficient and is pricing in bona fide risks.

I think it does happen now and then that real inefficiencies develop; including inefficiencies that can be spotted and exploited by amateur investors and other laymen. But I think that's pretty unusual.

My instinct is that if you buy into the Brazilian markets today, it's like the proverbial sprint in front of a steam roller to grab a nickel off the pavement.

But then again, I'm one of those cautious long-term Boglehead type investors.

Agree that the US market is not a good reference, but out of curiosity, can you share any examples? I can't think of a single time when a country stock index collapsed 25% in a day off the top of my head. Which times did you remember in your investing career? I'm sure it's happened.

One thing to keep in mind is that the socialist President is already in charge.

Edit: I also just checked with ChatGPT. It's a little confusing because there are so many parties, but it does appear that that Bolsonaro aligned parties control about 70% of the lower chamber and 75% of the Senate. So it's quite possible Lula is impeached and removed. His corrupt judges can be removed more easily since it only takes the 2/3rds of the Senate, without lower house involvement.

So, at a minimum, Lula is extremely boxed in, his judges even more so.

Some reason INTR became my brazillian crack. In around 5 pre-first election out at like 6.7 and keeps going to 7.5.

Now it’s 4.5? Is the difference between Lula and Bolsonaro that Brazillian stocks are either all zeroes or infinity? If I am trading a company with its own fundamentals then falling 7.5 to 4.5 seems like a lot. The stock price moves imply a difference of like Mao and Reagan.

One thing on buying (or selling) after events is it’s almost always better to wait 3 days unless you need to do huge institutional size. I sold my Brazilian shit first day after the first round election because it was up 30% but if I waited 3 days would have gotten 50%. Usually today is not the day to buy.

The stock price moves imply a difference of like Mao and Reagan.

Yeah, because it basically is. In recent decades, avowed socialists in Latin America who come to power “democratically” have a proven track record of ignoring property rights (esp. of foreigners), nationalizing businesses, and redistributing wealth to political insiders. The market is pricing in the (very reasonable, imo) likelihood that Lula will turn out to be another iteration of Chavez or Morales.