ITUB - EWZ: 'Bolsonaro Bump' Set To Push Brazil Stocks Higher
iShares MSCI Brazil Capped ETF (EWZ) is up nearly 40% since September with the underlying stocks among the best performing in the world over the period. This article will explore the outlook for Brazil and reasons why I think there is more upside for the country ETF. The bullish case for the ETF considers the following catalysts and themes I expect to play out over the next year:
- Firming consumer /business confidence and investor sentiment since election of new President Jair Bolsonaro.
- Stable-to-improving macro outlook under a low inflation environment, expansionary monetary policy,