Will investors be rewarded in Brazil?

Politics remains swing factor

Robert Davis, senior portfolio manager, Emerging Market High Dividend at NN Investment Partners,on why it is important to be selective when investing in Brazil.

The alphabetic character of recessions and subsequent recoveries has been frequently discussed since the financial crisis, with 'U-shaped' or 'L-shaped' making regular appearances in market commentary.  Less common in the slow grind of QE-supported recovery has been the 'V-shape' - representing a calamitous collapse, followed by an equally rapid recovery.  Yet investors in Brazil's equity markets would be familiar with the 'V', especially if they monitor a US dollar-denominated index such as the MSCI Brazil so that the volatility of the Brazilian real is overlaid on an already excitab...