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.
For further details see:
EWZS: Look For A Buying Opportunity Later In 2023