On a special "Brazil Political Crisis" audio blog we recap the events of the last 24 hours, and outline the market impact for investors in the short to medium term. What multinational companies have the most exposure to Brazil? And why should you care about Brazil as a global investor? We address all of these questions for investors.
In summary, Brazil (EWZ, quote) appears dead on arrival for constructive reform agenda anytime before a new presidential election cycle takes place. While 2018 is a long time to wait for political clarity, the events remain fluid and we could see events move swiftly from this point. Brazil has been an overweight trade for locals and EM dedicated investors as the recovery in consumer and banking names punctuated a sense of optimism in the political recovery. Brazil may also be exactly the test case for crossover investors that affirms for them why EM is too volatile a trade.
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