Brazil Is a 'Loser', According to Management Corporation BlackRock

10/23/2015 - 10h56

In a turbulent time for emerging markets, investors have to separate the "winners" from the "losers" and filter their bets. Brazil is in the second group according to financial market giants.

In a Bloomberg event last Thursday (21), in New York, the director of the largest investment management corporation, BlackRock, criticised the slowness with which Brazil "adjusts to the new world".

"We see vulnerability in countries where the political environment has conducted reforms. Agility and dampers is what we seek; the absence of these elements causes the country to be a loser, "said Pablo Goldberg, who put in that group, Brazil, Venezuela and Ecuador.

He told Folha that he expects Brazil to recover not before 2017 and it essentially depends on its "rebuilding credibility". "If the prospect was more favourable, the government could negotiate part of the fiscal adjustment for the future."

"What is scary is that the political game takes you nowhere. We need to focus on the state of the economy."

The country was also criticized by representatives of Alliance Bernstein, TCW asset management and Wells Fargo Bank, in addition to the moderator, special reporter for Bloomberg, Gavin Serkin.

Asked by the audience about the "countries that have fallen out of fashion–Indonesia, Russia and Brazil," Wells Fargo manager Derrick Irwin mocked: "Excellent countries. There is no other to talk about? ".

He believes that "if and when Brazil recovers" highly qualified companies will come out ahead. Paul DeNoon, director of Alliance Bernstein, agreed that investors should prioritize more robust companies.

David Robbins, TCW director, caused laughter by saying he would "leave Brazil to colleagues". According to him, Russia and Indonesia already rehearse a recovery.
 
p(tagline). Translated by JULIANA CALDERARI

Read the article in the original language