Time to Short the Brazil Real (BZF)

Brazil's Real is the most overvalued currency according to the all powerful Goldman Sachs (NYSE:GS). The bank says a 2% tax on foreign purchases has yet to prove effective at control, as a "wall of money" has led the real to appreciate 34% this year.
You can jump on the bandwagon and go short the WisdomTree Dreyfus ETF BZ Real Fnd (ETF) (NYSE:BZF).

The WisdomTree Dreyfus Brazilian Real ETF (BZF) main goal is to earn current income reflective of money market rates in Brazil available to foreign investors, as well as provide exposure to movements in the Brazilian Real relative to the U.S. Dollar. 

WHY GO SHORT THE BZF?
Because Goldman says so -- Nov. 25 (Bloomberg) -- Brazil’s real is the “most overvalued” currency as a “wall of money” coming into Latin America’s biggest economy may overwhelm government efforts to curb its rally, said Goldman Sachs Group Inc.

While the real has underperformed other currencies after the government imposed a 2 percent tax on foreign purchases of equity and fixed-income assets on Oct. 19, the effectiveness of the levy “remains to be seen” and may prompt further controls, Goldman Sachs economist Thomas Stolper wrote in a note today.

“After some initial success with capital controls, real appreciation appears to be on the rise again,” Stolper wrote in a note to clients.

The real has gained 34 percent this year, making it the second-best performer in the world after the Seychelles rupee.

A quickening economic recovery and the nation’s link to growing demand for commodities from emerging markets such as China have led to “unprecedented amounts” of overseas capital flowing into the country, Stolper wrote. Inflows reached $17.6 billion in October, compared with $6 billion to $8 billion in previous months, he wrote.