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### **Risk Management Strategies for Investing in $BRIC (Brazil, Russia, India, China)** Given the **high volatility, geopolitical risks, and economic dependencies** of BRIC markets, a disciplined risk management approach is essential. Below are key strategies to mitigate risks while maintaining exposure to growth opportunities. --- ## **1. Diversification Strategies** **Avoid overexposure to any single BRIC country or sector.** | **Risk** | **Diversification Tactic** | **Example** | |-------------------------|----------------------------------------------------|------------| | **Country Risk** | Allocate across all 4 BRIC nations (avoid >30% in one). | 25% Brazil, 30% India, 30% China, 15% Russia | | **Sector Risk** | Balance commodities (Brazil/Russia) with tech (India/China). | Pair Petrobras (Brazil oil) with TCS (India IT) | | **Asset Class Risk** | Mix equities, bonds, and commodities. | Hold **$BKF (stocks) + EMB (EM bonds) + gold** | | **Currency Risk** | Use **USD-hedged ETFs** for stability. | $HEWC (China hedged), $DBBR (Brazil hedged) | --- ## **2. Geopolitical & Regulatory Hedges** **Russia & China carry high regulatory/political risks.** | **Risk** | **Hedging Strategy** | **Example** | |-------------------------|--------------------------------------------------|------------| | **Sanctions (Russia)** | Avoid direct exposure; use **alternative EMs** (e.g., Indonesia, Vietnam). | Replace $RSX with $EIDO (Indonesia) | | **China Crackdowns** | Focus on **offshore Chinese stocks** (HK/US-listed). | $MCHI (HK-shares), $KWEB (tech ADRs) | | **Trade Wars** | Monitor US-China tensions; shift to **domestic-focused Indian stocks**. | $INDA (India ETF), Reliance Industries | --- ## **3. Currency Risk Mitigation** **BRIC currencies (BRL, RUB, INR, CNY) can be volatile.** | **Strategy** | **Execution** | **Example** | |-------------------------|--------------------------------------------------|------------| | **USD-Hedged ETFs** | Use ETFs that neutralize forex fluctuations. | $HEWC (China), $DBBR (Brazil) | | **Forex Options** | Hedge currency exposure via **put options**. | Buy USD/BRL puts if long Brazil | | **Stablecoin Yield** | Earn USD-pegged yield in DeFi (if in crypto $BRIC). | USDC staking on Aave | --- ## **4. Liquidity & Exit Strategies** **Some BRIC assets (Russian stocks, small-caps) can be illiquid.** | **Risk** | **Solution** | |-------------------------|--------------------------------------------------| | **Low Liquidity** | Stick to **large-cap ETFs/stocks** (e.g., $EWZ, $FXI). | | **Sudden Crash** | Set **trailing stop-losses** (e.g., 15% below entry). | | **Sanctions Freeze** | Avoid **local Russian/Chinese exchanges**; use int’l brokers. | --- ## **5. Technical & Sentiment Alerts** **Use indicators to avoid major drawdowns.** | **Signal** | **Action** | |-------------------------|--------------------------------------------------| | **RSI > 70** (Overbought) | Take partial profits or hedge with puts. | | **Death Cross (50MA < 200MA)** | Reduce exposure until trend reverses. | | **VIX Spike** | Shift to defensive assets (gold, USD cash). | --- ## **6. Crypto-Specific Risks (If $BRIC is a Token)** | **Risk** | **Mitigation** | |-------------------------|-------------------------------------------------| | **Smart Contract Risk** | Audit code; use **blue-chip DeFi** (Aave, Uniswap). | | **Rug Pulls** | Verify team + liquidity locks. | | **Regulatory Ban** | Avoid centralized tokens; use **DEXs only**. | --- ### **Final Risk-Managed Portfolio Example** | **Asset** | **Role** | **Risk Control** | |-------------------------|------------------------|------------------| | **$INDA (India ETF)** | Growth driver | 25% cap, stop-loss | | **$MCHI (China ETF)** | Tech exposure | USD-hedged | | **$EWZ (Brazil ETF)** | Commodity play | 20% max allocation | | **Gold (GLD)** | Hedge vs. volatility | 10% portfolio | | **USDC (Stablecoin)** | Cash reserve | Earn yield in DeFi | --- ### **Key Takeaways** 1. **Diversify** across countries, sectors, and asset classes. 2. **Hedge currencies** with USD-pegged instruments. 3. **Avoid illiquid/sanctioned assets** (e.g., Russian stocks). 4. **Use stop-losses and technical signals** to limit downside. 5. **For crypto $BRIC**, prioritize audited smart contracts and DEX liquidity. By following these strategies, you can capture BRIC growth while minimizing catastrophic risks. **Need a tailored plan for your portfolio size/risk tolerance?** Let me know!

Congo has extended its ban on the export of cobalt, a key material in making electric vehicle batteries, for another three months. The Democratic Republic of Congo has restricted electronic vehicle manufacturers’ access to a material essential to their technology: cobalt. Today’s development is the latest in a familiar theme of trade wars spreading across different sectors. The Democratic Republic of Congo (DRC) is the world’s leading producer of cobalt, and as such, the move spells uncertainty for electric vehicle (EV) manufacturers. Congo’s mineral regulatory agency made the announcement on Saturday. The industry is currently experiencing a crisis as global cobalt prices remain in decline. Miners are currently divided over how to navigate the growing stockpile. The original four-month export suspension was imposed in February 2025 to curb an oversupply of cobalt, a critical component in lithium-ion batteries used in EVs, smartphones, and other high-tech devices. The initial ban was set to expire on June 23, but the new extension will run until September, keeping roughly 70% of the world’s cobalt production largely unavailable to global markets. “The decision has been taken to extend the temporary suspension due to the continued high level of stock on the market,” the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS) said in a statement. Congo’s ARECOMS expects its market intervention to stabilize cobalt prices, which fell to a nine-year low of $10 per pound earlier this year. Congo’s latest move has sparked disagreement among the industry’s biggest players, including Glencore and CMOC Group. These companies are the world’s top two cobalt producers, and they are currently on opposite sides in terms of how to move forward. Congolese authorities have been considering implementing a system of export quotas that would limit how much cobalt each mining company can ship abroad once the ban is eventually lifted. The proposal is still under review, but it appears to have gained traction with Glencore, an Anglo-Swiss mining and commodities giant. The company believes a quota-based system is a way to better manage supply and pricing. However, CMOC Group, China’s state-backed mining conglomerate, is lobbying for the immediate removal of the export ban altogether. CMOC argues that the continued suspension will distort global markets, undermine long-term supply relationships, and could damage the reputation of Congolese cobalt as a reliable input for EV manufacturers and tech firms. This is especially important as major automakers are currently ramping up EV production in an effort to meet their ambitious climate targets. These companies require stable and ethical sources of battery materials. Disruptions in cobalt supply can lead to delays in battery manufacturing, increase costs, and force companies to seek alternative methods that rely less heavily on cobalt. Already, several battery producers have begun transitioning toward nickel-rich or cobalt-free technologies. This change is partly due to ethical concerns tied to artisanal mining in the DRC, and now because of price volatility and regulatory unpredictability. The extended Congolese export ban is expected to tighten global cobalt availability further, potentially driving prices upward in the second half of the year if stockpiles begin to shrink. Some analysts believe the DRC’s move may encourage speculative hoarding or opportunistic deals with buyers willing to pay a premium for early access once exports resume. For now, ARECOMS has said it will issue a final decision to either modify, lift, or further extend the suspension before the new three-month period ends in September. “We will continue monitoring stock levels and market conditions and will provide further guidance before the current extension expires,” an agency spokesperson said. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More

The Norwegian government is considering temporarily suspending new Bitcoin mining operations. This drastic measure, driven by energy concerns, could reshape the landscape of European mining. The Energy Minister, Terje Aasland, has formalized the Labour government’s position: this is a major turning point in Norway’s energy strategy. This measure mainly targets the most energy-consuming technologies, especially those based on the proof of work mechanism. Bitcoin is therefore on the frontline, followed by cryptos like Dogecoin, Bitcoin Cash, or Litecoin, also affected by this increasing regulatory pressure. This offensive is no accident. As early as 2018, Norway began reducing its support for the mining industry by cutting electrical subsidies. The ban on new projects would mark a significant escalation in this restrictive policy. However, the government is trying to safeguard technological innovation. “The useful use of blockchain technology and AI is also important,” specifies the official statement . The surge in energy prices in Norway is one of the main factors behind this turnaround. The country, once advantaged by its abundant hydroelectric power, is now affected by the European energy crisis. Interconnection agreements with neighboring countries are gradually turning Norway into the continent’s “battery,” to the detriment of its own consumers. Facing this pressure, authorities prioritize the “socially useful” uses of electricity. Traditional data centers and AI applications are favored, while the mining industry, seen as speculative, is relegated to the background. The repercussions extend far beyond Norway’s borders. This decision is part of a global regulatory tightening movement. China already caused a massive exodus of miners to the United States in 2021. Other European countries are watching the Norwegian experience closely. Paradoxically, this regulatory pressure comes while the American industry itself is going through a major crisis . Archaic tax rules and tariffs under the Trump administration financially squeeze operators across the Atlantic.

November 8th 2022. Collapse of FTX. Bitcoin price at time of tweet? $17,500. Market bottomed 10 days later at $15,500 and then rallied to 100k+. War, invasion, hack, collapse, bitcoin ban, new regs, I don’t care what is worrying you, panicking is NOT the solution. What helps you avoid panic? Focusing on the chart and key levels that you already mapped out ahead of time so you feel comfortable/confident in your positioning because you have clear levels of interest and invalidation to guide you regardless of what’s going on in the world.

Switzerland added the right to hold cash in its constitution Meaning that cash will never be taken off circulation unless 51% of the country agrees AND every single state agrees Which will never happen Meanwhile the French ministers wants to ban cash Based Swiss as usual