If economic reforms pull through, the economists believe the equities market offer some potential.
“The equity market still offers reasonable upside, favoring domestic-oriented companies leveraged to stronger economic activity and lower cost of capital and those benefiting from less government interference,” Morgan Stanley economists said.
For instance, the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ), a market cap-weighted index fund, could benefit from the less heavy-handed government intervention in the private sector. [Election Bounce for Brazil ETFs]
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Max Chen contributed to this article.