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Pessimism grows for Brazilian stocks with brokers joking of getting shown the door at buy-side...

Pessimism grows for Brazilian stocks with brokers joking of getting shown the door at buy-side houses when trying to hawk the shares. The concerns of shareholders at Petrobas (PBR) and VALE seem to take a back seat to those of the government, and investors wonder which sector - perhaps the banks - will be the next target of intervention. EWZ -5.5% YTD.
Comments (1)
  • Invest in any Brazilian equity and you are immediately exposed to the political winds of that country which are extremely hard to predict.
    Phenomenal opportunity exists in Brazil as well as risks that are impossible to decipher.
    I live there about half the year and love it but would never invest in any of this countries equities. As I watch my friends endure a multiple week process to either get a drivers license or a passport I understand that any investment in this country is at risk with the ultimate threat being a Hugo Chavez style government which is a possibility. This would wipe out any Brazilian equity investments overnight.
    12 Oct 2012, 08:21 PM Reply Like
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