...Brazil may be in a better overall position than Canada (proxy EWC) or Australia (proxy EWA) in a carbon crisis due to its low consumption level and its significant alcohol export component.
Brazil is not expropriating corporate assets, repudiating contracts, and threatening its neighbors with supply disruption or missiles as Russia is doing. Brazil is not producing dangerous products such as poison pet food or toothpaste or defective tires as China has been doing.
Unlike India, Brazil is not next door to a major country (Pakistan) that is in danger of falling under the control of religious radicals that would be dangerously hostile neighbors, and does not have current military border conflicts or a history of war with its neighbors.
Brazil has been a good price performer and is recently the better price performer in the BRIC complex. For these and other reasons, we overweight our Brazil country allocation.
From QVM Group LLC
