Will Landers, managing director for Latin America at BlackRock, which has $10.2bn under management in the region, is overweight Brazil and has been building positions as others pull out.
“The government is showing strong resolve and everything is moving in the right direction,” Landers told beyondbrics on Thursday. “But Brazilians are sceptical by nature. And the top-down call right now is that it’s time to move into developed markets.”…READ MORE.
My Take: What BlackRock is doing is investing, not trading. As you hear in the article, they are looking at Brazil from a multi-year perspective, not a short term perspective. They know their strategy and their projections. This allows them to keep their cool and not run at the sign of a slight sift. Pullbacks are a natural part of a growing market. Unexpected events will occur and some people will take profits and move to other areas. If you believe in a long-term growth story, then stick with that country, industry, sector or stock. Just because the market doesn’t move up when you want it to doesn’t mean you’re wrong; it might only be a small piece of a much larger picture.
I’m of a similar opinion with regards to Brazil. Yes, political concerns are there and will remain, but I do not believe we’re going to see a 2nd Hugo Chavez or other command and control dictator take power there. With more development and wealth their country should become more stable and more attractive to investors across the globe.