Ignore the mainstream news and invest in Brazil Frank Curzio, Jr. is the editor of Small Stock Specialist, an investment advisory which focuses on undervalued growth stocks with small market caps.
Prior to joining Stansberry & Associates in 2009, Frank worked for one of the richest hedge-fund managers on Wall Street, where his job was to analyze stocks in the "under $10" sector. He also wrote a "stocks-under-$10" newsletter for TheStreet.
MSCI Brazil Capped Fund(NYSE: EWZ, Stock Forum) tracks some of the biggest large-cap and mid-cap stocks in Brazil. The fund is already up around 11% this year – easily outperforming the S&P 500. I expect this fund to continue to perform well over the next 12-18 months as Brazil's economy sees massive growth.
And I'm not the only one who is bullish on Brazil. This week, CNBC hosted the Delivering Alpha Conference in New York City. Each year, this conference is where the best hedge-fund managers in the world share their favorite ideas.
This year, legendary investors like Carl Icahn, Leon Cooperman, Nelson Peltz, John Paulson, Bill Ackman, and Stanley Druckenmiller spoke. Then Michael Novogratz took the stage to talk about his favorite ideas.
Novogratz is the chief investment officer of Fortress Investment Group. They have over $60 billion in assets under management. He doesn't get the same media attention as the Carl Icahns and John Paulsons... But Novogratz has one of the best track records in the business. It's why Institutional Investormagazine named him the "Hedge Fund Manager of the Year" last year.
He said investor pessimism is at an "all-time high" in Brazil. That makes it a great contrarian play. He believes the market is cheap, and we will see a rise in Brazilian assets through the October elections.
EWZ is the safe way to invest in Brazil. It trades at a 17% discount to the S&P 500 right now and yields over 3%. That's a 75% premium to the S&P 500.
But for those willing to take on more risk, the Market Vectors Brazil Small-Cap Fund (NYSE: BRF, Stock Forum) could offer big returns. This fund tracks the most popular small-cap stocks in Brazil. And it trades at a 30% discount to the S&P 500. It also pays a near-2% yield.
In short, Brazil is one of the fastest-growing markets in the world right now. And the fears and negative stories written about Brazil are overblown. As investors realize this, I expect these two funds to soar.
Read more at https://www.stockhouse.com/opinion/independent-reports/2014/07/21/ignore-mainstream-news-and-invest-brazil-ewz-brf#ku8boXylZv11WpW5.99
https://stansberryresearch.com/investment-experts/frank-curzio/