Brazil faces unforgiving economics after election
https://www.ft.com/content/d47f9b39-9e78-4034-97a2-1ca8e07e27e8
For investors, that is a reason for engagement, not despair. Brazil trades at humbling valuations. It has some of the world’s highest real interest rates and the currency is at near record lows with the real down 70 per cent over the past 15 years despite an 8 per cent bounce over the past year. If it gets the sequence of economic management right — consolidation, disinflation, then building growth — the country is a compelling opportunity.
https://www.ft.com/content/d47f9b39-9e78-4034-97a2-1ca8e07e27e8
For investors, that is a reason for engagement, not despair. Brazil trades at humbling valuations. It has some of the world’s highest real interest rates and the currency is at near record lows with the real down 70 per cent over the past 15 years despite an 8 per cent bounce over the past year. If it gets the sequence of economic management right — consolidation, disinflation, then building growth — the country is a compelling opportunity.