Brazilian markets just had one of their worst days in decades. Lula won a fourth term on Sunday, October 25. On Monday the Ibovespa closed down 13.9%, the real lost about 8.8% against the US dollar, and the iShares MSCI Brazil ETF (EWZ) fell 19.8%, its second-worst day since it launched in 2000.

So is the crash a reasonable entry point for a small Brazil ETF? My answer is a qualified yes, but not for the reason the headlines suggest. The selloff tells you more about positioning than about Brazil’s economy. That distinction changes how you should buy.