Brazil is near the end of its worst recession on record. Latin America's largest economy has turned the corner and is, once again, presenting itself as an attractive investment opportunity. After several years of political turmoil, economic challenges and a soaring fiscal deficit, investors lost confidence in the nation's prospects. We believe there is now clear evidence to suggest that a recovery in Brazil is currently underway, creating an attractive entry opportunity in a deep and broad equity market.
Investment Considerations — There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.
Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.