Brazil opportunities pour forth

BRAZIL

BlackRock's Will Landers says a burgeoning middle class and low inflation rates will help stimulate future growth in Brazil

Brazil offers the best combination of a strong top-down story and the most attractive valuations from a bottom-up perspective. This is a result of some fundamental developments. It has a growing middle class with an unmet, pent-up demand in the areas of credit and housing. Credit is becoming increasingly available and affordable, local investors are expected to increase their equity exposure, and the opportunity created by hosting the World Cup and Olympics should be significant. Brazil also continues to trade in the bottom half of global valuations, with an approximate P/E of 11x predi...