First it’s hot. Then it’s not. Now it’s getting warm.
Perhaps that’s too terse a summation of U.S. investors’ view of opportunities in Brazil, but the “getting warm” part may be apt given current sentiment toward South America’s largest economy.
While Brazil’s seemingly perpetual spending and governance problems haven’t gone away, they seem to be under control, consumer and business confidence in Brazil is rising and some see promise for those who can afford to take a flier.
Looking at the country with the sober perspective of credit analysts, Oppenheimer Funds said recently that Brazil’s economic and political picture has stabilized and that there is more clarity on policy. That has buoyed confidence, which should increase investments.