Boy, what a difference a few years make. For Brazil, it’s the turnaround it so badly needed.
The nation was railroaded after the Great Recession. Low growth, high inflation and a ton of corruption made stocks in the Latin American country pretty much untouchable for the last five years or so. And returns for Brazilian stocks reflected that disdain.
However, these days, investors are singing a different tune. And that includes investment manager Invesco.
With Brazilian stocks hitting new highs and growth once again returning to the nation, Invesco recommend that investors “start to samba” and consider adding a heaping dose of Brazilian equities to their portfolios.
A Big Reversal
It’s easy to see why Brazil was so hated. After the recession, the “B” in BRIC was hit hard by falling commodity prices. As a producer of a variety of natural resources, Brazil saw its economy shrink. At the same time, crippling inflation began to creep into the nation. All of this made life pretty hard for the average Brazilian, and the country slipped into its worst recession in history.