World Cup and Olympics make Brazil natural investment choice

ON EMERGING MARKETS

Charlemagne Capital's Ian Simmons believes Brazil still offers a good long term investment story, despite currently being in negative territory.

Investors in Latin America have had to hunt harder for returns over the last 18 months than in the five-year bull market prior to the credit crisis. Despite a backdrop of rising commodity prices and a quick return to growth after the crisis, the regional index has underperformed those of other emerging markets. Indeed, the Brazilian market, which represents two-thirds of our benchmark, is in negative territory this year. As in some other EMs, inflation has been the biggest concern, and specifically, whether Central Banks will be willing to contain it and the ensuing impact on growth. Whi...