EWZS - EWZS: Look For A Buying Opportunity Later In 2023

2023-05-24 03:50:03 ET

Summary

• Emerging Markets, in general, and Brazil, in particular, are trading at extremely low P/E multiples in the context of the last two decades.
• Brazilian stocks are cheap for many reasons; but this may not warrant such a large discount. It may lead to a bullish run like in the early 2000s.
• Poor sentiment is seeing Brazilian stocks likely in a bottoming-out pattern. Yet, later this year might present a better entry point, given the challenging outlook for commodities this year.
• The iShares MSCI Brazil Small-Cap ETF has less concentrated bets on commodities versus the MSCI Brazil Index. It may provide good risk/reward and diversification for one’s portfolio.

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