Top Takes From RealMoney

The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and (if applicable) how they played those ideas.

Brazilian Stocks and Bonds

By Marc Chandler
7:30 a.m. EDT Late yesterday, Brazil announced that it would impose a 2% tax on foreign purchases of Brazilian bond and stock transactions. This is particularly aggressive, in that the new tax replaces a 1.5% tax that was scrapped last year during the crisis and was applicable only to fixed-income purchases. The new tax goes into effect today.

The tax may weigh on the Brazilian real in the short run, but sentiment toward Brazil is likely to remain positive. As noted, the tax has been adjusted recently, and it is difficult to see its impact. The bullish Brazil story, which has lifted the stock market by almost 80% this year and has made the real the best-performing major currency against the dollar, up nearly 35% this year, has been its high interest rates, commodity-intensive economy, the global investment climate favoring high-yielding high risk assets, and what appears to be a diversification of portfolios, especially by Japanese and American investors.

Data from the local stock market indicates that foreign investors have bought around BRL17 billion worth of Brazilian shares this year. The dollar has been forming a base near BRL1.70 in recent sessions. The BRL1.75 area is the first area of notable resistance.

Moody's Causing Headache for Buffett

By Don Dion
7:30 a.m. EDT Now we learn of an allegation that a junior analyst at Moody's(MCO Quote) took $10,000 to help Raj at Galleon make $4 million. Moody's can't stay out of the negative headlines. As I have discussed several times over the past month, investors should follow Warren out the door on this puppy.

Positions: None