“Brazil has a relatively healthy balance sheet, rosy growth prospects, and a growing middle class. Brazilian stocks and the real have been great long-run performers and are another way to access commodity returns,” says Morningstar analyst Samuel Lee. [List of Brazil ETFs]
However, he notes that Brazilian stocks can be risky and volatile. For example, the market plunged nearly 70% from peak to trough in the 2008 financial crisis, Lee said in an analyst report on EWZ.
Brazil is forecast to grow less than the U.S. in 2012, Forbes reports.
Earlier this week, the central bank cut interest rates as it tries to balance economic growth and inflation in Brazil, according to a separate report.
iShares MSCI Brazil
