Brazil: Prioritizing Growth Over Inflation
The Brazilian government and the central bank will be prioritizing growth over curbing the fiscal deficit and inflation. The outcome of an easy policy mix is that growth and inflation will be higher relative to market expectations, and real interest rates will drop considerably. We recommend that investors go long mid- and small-cap stocks on a pullback and inflation-linked bonds. However, foreign investors should hedge the currency risk.
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BCA Research | Emerging Markets Strategy
Critical input for global and EM investors as it provides global macro investment themes as well as recommendations for EM equities, currencies, and fixed income.
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