Invesco Manager: Brazil a “Sinkhole of Corruption Still Searching for a Bottom” (Forbes)

A recent Forbes article about Brazil has quoted Sean Newman, a senior portfolio manager at Invesco, as saying:

“You still have to be careful with Brazil because it is a sinkhole of corruption still searching for a bottom. Brazil is cheap right now because we haven’t seen the results of that tape yet. If Temer did offer hush-money, we will go lower. I think you should be reducing risk where it is appropriate and wait for things to unfold. We can see another downside easily. I’m not adding…”

“…Pension and labor reforms are highly critical for us on Brazil. Without it, the debt will spiral out of control and you’re now on a path to a single B rating.”

Note: Brazil is rated BB as it lost its investment grade rating in 2015.

The Forbes article also note that: The Temer administration knows it has no chance of being elected in October 2018 and can concentrate on unpopular reforms to social security and labor unions.

To read the whole article, American Investors Not Ready To Give Up On Brazil Just Yet, go to the website of Forbes. In addition, check out our Brazil ETFs list.

Similar Posts:

• Aberdeen LAQ Manager: Brazil “Looks to be Slipping Into a Recession”
• Brazil: What’s Gone Wrong Plus Four Scenarios (Miami Herald)
• YPO CEO Survey: Brazil CEO Confidence Stagnates (YPO)
• Mark Mobius’ Contrarian Case for Investing in Brazil (Mobius Blog)
• Stocks with 10% or More Sales Exposure to Brazil (Goldman Sachs)
• Emerging Market Acronyms Like “Fragile Five” are Misleading and Unhelpful (SCMP)
• Downgraded Countries Were Top Emerging Market Performers in 2016 (IOL)
• Brazil’s Giant Problem: The State (WSJ)
• Latin America’s Pink Wave Faces Investor Skepticism (The Emerging Markets Investor)
• Brazil: A Nation Divided | FT Film (Financial Times)
• Infographic: Brazil Left in the Lurch by China (WSJ)
• Chart: Brazil Exports to China Begin to Cool (WSJ)
• Brazil Is Ready for Its Own TV Star President (Bloomberg)
• Brazil’s Middle Class Feels Recession Pains (CNN Money)
• Brazil Takes Big Reform Step (Franklin Templeton)