Brazil

Last year was a stellar year for emerging equity markets.

With fund flows recently seeing a recovery, the trend in UK stock markets has seen home investors shifting their bias into emerging markets. Is this just a drop in the ocean or the start of torrential investment downpour?

Emerging markets offer potential for significant growth in the long term. A jewel in that crown, for the medium term, is Brazil, along with the rest of Latin America

Latin American equities are undervalued relative to other emerging markets and are set to outperform Asian stocks in the near term, according to HSBC Global Asset Management.

Brazil will be one of the first countries to emerge from recession and is on track to become a global economic powerhouse, according to Legg Mason affiliate Batterymarch.

Equity markets around the world have continued to rally, fuelled by liquidity and some signs of improving economic data.

The key areas to focus on in Latin America, certainly from an equity investor's point of view, are Brazil and Mexico.

Bryan Collings increased exposure to Russia, Brazil and Indonesia in Hexam Global Emerging Markets during August, while retaining an overweight to China.

We believe there is a strong strategic case for choosing to invest in commodities. Over the next 15-20 years, we expect demand for the world's natural resources to grow at a rapid pace.

Emerging markets equities experienced an extraordinary recovery in the second quarter of 2009.