Steve Drew, Henderson GI

Regardless of Who Wins the Election, Brazil is Likely to go Through a Challenging Time in the Years to Come

Date:

Regardless of Who Wins the Election, Brazil is Likely to go Through a Challenging Time in the Years to Come
Steve Drew, responsable de Crédito de Mercados Emergentes en Henderson Global Investors. Gane quien gane las elecciones es posible que Brasil se enfrente a años difíciles

Author: Fórmate a Fondo

  1. The winner on October 26 will likely be the candidate who can persuade the third-placed Marina voters that their program is good for the future of Brazil
  2. A ‘Neves win’ would initially lead to risk-on sentiment in the markets, a ‘Dilma win’ would do the opposite
  3. Even the risk-on mood may be temporary as the reality bites of how Brazil can re-engineer growth in a faltering economy
  4. In the case of a ‘Neves win’, the initial risk-on reaction would create investment opportunities, the best of which will likely be found in liquid instruments
  5. From a risk/reward stance, Henderson believes Brazil should remain an underweight position for the foreseeable future