For the last few years, Charles de Gaulle’s quip that “Brazil is the country of the future, and always will be,” seemed like an anachronism as the Latin American economy seemed to blossom. But it didn’t last long.
Unfortunately for Brazilians, de Gaulle’s witticism now seems on target once again. And things may deteriorate even further before they get better. For investors, that will likely mean staying away from Brazilian stocks until the second half of next year.
How bad is it? Pretty awful. Brazil is beset by an economic crisis and a huge political controversy that is threatening its president.