Last week, Jair Bolsonaro was stabbed at a campaign rally.
He’s running for president of Brazil. Many call him “the Brazilian Trump.” He’s known for his racist, sexist and homophobic comments. But he might follow Trump’s success. After he recovers from surgery, he’s expected to win the election. That would put him in charge of South America’s biggest economy.
Brazil has been suffering a recession for years. Government scandals and corruption are as common as sunscreen on a Rio de Janeiro beach. Brazil’s stock market has also burned investors for a decade. If you had invested $10,000 in the iShares MSCI Brazil ETF ten years ago, it would be worth about $5,000 today.
Argentina is South America’s second largest economy. And it looks even worse. Argentines are struggling (again) with run-away inflation. According to Trading Economics, inflation for the 12 months ending July 2018 soared more than 30 percent. It’s just one more reason to sell emerging market shares. At least, that’s what many people think.