Why Brazil's middle class is providing a base for recovery

Despite years of political upheaval, Brazil is attracting greater interest among investors due to the purchasing power of its growing middle class. In investment terms, being middle class offers more opportunities, notes John Ewart, co-manager of the Aubrey Capital GEM Opportunities fund, who has just returned from a trip to Brazil.

Investors want vibrant companies with proven management and robust business models, to exploit their position with the consumer as wealth accumulates and the economy grows. Former President Lula da Silva's two terms in office up to 2011 has been tainted by controversy over his role in the Lava Jato corruption investigation, but Lula can be credited with transforming the lives of more than 40 million people through their progression into the middle classes. From 2006 to the end of 2011, GDP per capita more than doubled, from $5,860 in 2006 to over $13,000.  Global sporting events se...