Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Thematic (Sector/Industry)

<h2>Brazil's elections next month are naturally attracting plenty of attention.</h2><p></p><div class="content-highlight">
<p>Recently on Bloomberg, I heard a seasoned commentator explain that "It doesn't really matter who wins" the upcoming presidential elections, given the benign commodity outlook. He suggested that Brazilian assets simply follow a commodity cycle, tailwind or headwind. Period.</p>
<p>I also read that a "reformist" has a good chance of winning which would make the CAPE (cyclically-adjusted PE ratio) of 10x look like a steal amidst an improving business cycle.</p>
</div><p>So does it really not matter who is at the helm?</p><p>And who are these "reformists"?</p>

Brazil's elections next month are naturally attracting plenty of attention.
Recently on Bloomberg, I heard a seasoned commentator explain that "It doesn't really matter who wins" the upcoming presidential elections, given the benign commodity outlook. He suggested that Brazilian assets simply follow a commodity cycle, tailwind or headwind. Period.
I also read that a "reformist" has a good chance of winning which would make the CAPE (cyclically-adjusted PE ratio) of 10x look like a steal amidst an improving business cycle.
So does it really not matter who is at the helm?And who are these "reformists"?

Brazil Political Risk: Does It Really Matter Who Wins?