By Jason Simpkins Associate Editor Brazilian stocks as measured by the country’s Bovespa benchmark stock index has fallen 20% from its May 20 record, but that doesn’t mean it’s time to give up on Latin America’s largest economy. Brazil still has plenty to offer, and with stock valuations low, it’s a good time to go bargain hunting. In fact, a big reason why Brazilian stocks have dropped is because the country’s central bank has been forced to raise rates to curb inflation. Policymakers have raised the benchmark rate twice since April, to 12.25%. Of course, inflation isn’t a problem unique to Brazil. Inflation in India has been at alarmingly high levels since the first week of June, when it jumped from 8.75% to 11%. And many analysts expect government data released today (Friday) will show wholesale prices soared to a 13-year high of ...

Brazil’s time has come. For decades investment professionals have joked that Brazil was “the next big thing… always has been and always will be.” The country is phenomenally rich in commodities and natural resources—it’s the world’s largest exporter of sugar, coffee, beef, poultry, soybeans, and other items. However, until recently Brazil had yet to come anywhere near realizing its potential. From the 1980s until the early ‘90s the country trailed other emerging market economies due to its high inflation, international debts, and political corruption. Brazil tamed the inflation problem with its re-introduction of the Brazilian real in 1994— inflation subsequently plunged from 2,300% to a more reasonable 4% today. The country began denominating its debt in the real soon after, thus avoiding the exchange fluctuations that typically cripple emerging market economies, e.g. if you owe $4 billion in a foreign currency and that ...

Seymour talked about emerging markets and pointed to Brazil’s relatively low inflation (4.5%) and strong currency. Plus, the Brazilian economy is smoking hot right now, and consumers in the country are spending. Seymour recommended three stocks, including Unibanco, Perdigao, and Companhia Sanea. Track the performance of these stocks at: http://www.trackthepros.com/categories.php?category_id=161 Also, his 18 Global Trades recommended on 3/12 are doing quite well overall….11 of the 18 are beating the S&P 500 Index, 5 are negative, and 2 are positive but below the index: http://www.trackthepros.com/categories.php?category_id=696