Brazil: An Attractive Entry Point

Brazil: An Attractive Entry Point

We believe the recent global market volatility has created an attractive entry point for Brazilian equities. Asset prices have seen a violent pullback due to market sentiment around recent COVID-19 headlines, but Brazil’s investment case continues to improve as the country moves from recovery to growth and, in our view, a compelling turnaround opportunity. 

Investment Considerations — There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.

Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.