Could Brazil Be the Next Japan and India?

In recent years the world has experienced two elections in large countries that ushered in new governments pledging dramatic economic reforms and led to surging stock markets. In Japan in December 2012, the election of Shinzo Abe and his Liberal Democratic Party led to economic reforms known as “Abenomics” and big stock market gains in early 2013. In India, the election in May of Narendra Modi and his Bharatiya Janata Party also led to higher stock prices. Could Brazil’s stock market similarly benefit from its upcoming election?

Topics: Japan Blog Political Risk Brazil India

The Rise of Political Risk

One important trend in global financial markets during the last few years has been a rise in political risk, a concept referring to political changes that could affect the value of an investment. The number of events associated with political risk—such as elections, mass protests, and military interventions—has increased by 54% since 2011, according to a study by analysts at Citigroup. This kind of increase has a couple key implications for investors.

Topics: Blog Political Risk Brazil Europe Thailand Ukraine Turkey Russia India Emerging Markets

Which Countries Are Your Funds Invested In?

In a recent post we discussed the weak performance of Brazilian stocks over the past few years. But how do you know what your exposure is to Brazil (or any other country)? Unfortunately having only a general idea about the types of investments you own doesn’t answer that question.

Topics: Blog Funds Brazil Vanguard South Korea Invesco iShares

Brazil’s Stock Market Struggles

Emerging market stocks haven’t done particularly well in recent years, but Brazilian stocks have done especially poorly. From 2010 through 2013, Brazilian stocks substantially underperformed emerging markets as a whole in each calendar year. So far this year, however, Brazilian stocks have outpaced their emerging market peers. Does this reversal herald a comeback for Brazil’s stock market?

Topics: Blog Stock Market Economy Brazil Valuation