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Brazil visit notes: assessing the political landscape, reducing our net exposure and introducing a new single-stock position.

The political landscape in Brazil is shifting rapidly and its equity market is reacting equally swiftly. The iBovespa index has now rallied more than 60% in sterling terms in three months as investors anticipate a resolution to impeachment proceedings and Car Wash corruption scandal which would allow the country to move on from a period of political paralysis.

Last Sunday, Brazil’s lower house voted in support of impeaching Dilma Rousseff, Brazil’s President, by a margin of 367 to 137. It now seems unlikely that President Rousseff can gain the majority in the 81-seat upper house needed to veto the lower house’s vote.

James Inglis-Jones: How does near-term uncertainty affect our 2016 outlook?

So, what did the ECB’s announcement mean for growth investors? In her 29 February blog, Sam wrote:

“We should be prepared for the possibility that aggressive ECB action could once again spark an explosive period of equity market gains, led by contrarian value.  But the lessons from last year suggest that such an outcome should not be a trigger for long-term investors to rotate out of growth strategies.”

Matt Tonge: Smaller company fundamentals drown out Brexit noise

The upcoming vote on the UK’s membership of the EU is undoubtedly one of the biggest sources of uncertainty investors are faced with as they look forward to the rest of 2016. Reactions to the possibility of ‘Brexit’ among expert commentators have ranged from blithe lack of concern to dire predictions of economic doom. In such an atmosphere of turmoil, we believe that is it more important than ever to focus on company fundamentals, rather than macro-economic noise.


Any opinions expressed should not be construed as advice for investment in any [product or] security mentioned or which may form the underlying content of any topics discussed in this blog.  The information and opinions provided in this blog take no account of the investors’ individual circumstances and should not be taken as specific advice on the merits of any investment decision.   Any opinions or information provided has been based on sources we believe to be reliable at the time of this blog’s preparation: no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of such information.  Neither Liontrust, nor any of its partners, employees, representatives or agents accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of our research or its contents.

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