Wall Street Has Moved On From Brazil’s Political Crisis

Kenneth Rapoza – Forbes, 07/11/2016

Wall Street is looking forward to the day when Brazil’s economy turns the corner. They believe it happens in 2017. Wheels are in motion.

What is clear is that U.S. investors have moved on from the political crisis, but have not completely ruled out a return of ousted leader Dilma Rousseff. Nor are they expecting miracles from her vice president Michel Temer, who will be the official president once the impeachment is settled later next month.

The first catalyst for change was the December 2015 approval of the impeachment process against Dilma in the lower house. Once that date was settled, for mid-April, markets rallied. Regardless of the political drama behind the impeachment, investors see Dilma’s ouster as the trigger. That first shot was fired in December. The next one will be in August.

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