2024-06-30 01:40:02 ET
Summary
- Lula's attacks on Central Bank independence led to Brazil's poor performance in emerging markets, but similar speeches in 2023 resulted in a rally.
- Recent interest rate meeting showed consensus on maintaining rates, a positive sign for investors.
- Brazilian shares are at historically low prices, potentially presenting a great buying opportunity.
Investment Thesis
I recommend buying the Franklin FTSE Brazil ETF ( FLBR ). Brazil has been facing a bad moment in the stock market, especially due to discussions between the president of the republic and the president of the central bank . But it is worth remembering that the 2023 rally was marked by several speeches of the same type by Lula....
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FLBR: Exaggerated Pessimism Opens Up An Opportunity