“Kathleen, is Brazil’s recent coup d’état worrying you? I hear that it is implementing a leader worse than what it replaces and it’s nothing but old rich white men taking over through anti-democratic means.
“It’s important for me to live somewhere with strong democracy.
“Thank you kindly for keeping me informed.”
–Wanda M., United States (soon Brazil 05/19/2016)
Latin America Correspondent Lee Harrison replies:
I believe that the impeachment of President Rousseff was carried out in accordance with Brazilian law.
It appears to me that the situation is not unlike the impeachment of Bill Clinton in 1998, which left the United States with a stable democracy. The main difference is that in Brazil the president steps down during trial, while in the United States the president continues to serve.
For me, the more relevant question in the context of Brazil is when is the best time to re-enter this market?
The bargains in Brazil right now are incredible, and the dollar is strong.
I believe Brazil is near the bottom. As an investor with some tolerance for risk, I see this as a crisis-investing opportunity.
“Kathleen, I’ve long paid attention to LIOS advice on Brazil and have made good cash doing so. But I was floored at the cavalier attitude toward their recent coup revealed in a comment by Lee Harrison. I, for one, am looking at getting out over the seizing of power against Dilma. The new government is clearly hell-bent on negating the democratic process, no matter what. Dilma’s transgressions are hardly impeachment-worthy, and the new government’s actions is a sign of great uncertainty and worry for me and other investors.
–Jack J., United States (05/25/2016)