Why would anyone be concerned about the stock market in Brazil? It is not a leading stock market, it is not a leading economy in the world … so why bother? Very simple, says InvestingHaven’s research team, Brazil is part of the emerging stock markets that will outperform global stock markets, and Brazil has a great setup. So the Brazil stock market can be very profitable to investors in 2018.

How simple can market analysis be, right?

Wrong, because we explicitly started with one of the many misconceptions. Many investors do not care about a country like Brazil for all the wrong reasons in the world. The Brazilian economy is not stable, their political situation is not reliable, they did not participate in the G20 summit last summer. Oh, and here is the latest and greatest reason to avoid Brazil: Standard & Poors did downgrade the country because “its long-term credit rating because of “slower-than-expected” changes by President Michel Temer’s government” says BusinessTimes.com.

Imagine this, the well respected Standard & Poors downgrades Brazil, and InvestingHaven’s research team says the Brazil stock market is wildly bullish in 2018, so investors better add this to their portfolio. How can this sound reliable or even real?

It is very simple. In fact, it is much simpler than anyone can imagine. There is a very small number of data points that are relevant for investors, and only those ones do matter. In the case of Brazil:

  • The chart of the Brazilian stock market looks amazingly strong
  • It is part of a larger trend which is a raging bull market which started only last year as explained already a year ago in Emerging Markets Will Be Strongly Bullish In 2018 and confirmed very recently in It’s Official Emerging Markets New Major Bull Market In 2018 Is Now Confirmed
  • The underlying fundamentals of the economy of Brazil are improving drastically based on top line growth, as explained in this CNBC article as well as reported by Reuters (consider this the 1% of news articles that have some value for investors).