Brazilian stocks have been on a tear, but stubborn inflation could grind the recent rally to a stop.
It's a work in progress, and most likely will require further rate hikes by the central bank."
BCA Research's Arthur Budaghyan agreed that the Brazilian central bank is unlikely to hike rates for very long.
Against this backdrop, Budaghyan advises clients steer clear of Brazilian stocks in the near term.
U.S. investors who want exposure to the Brazilian stock market can obtain it through the iShares MSCI Brazil ETF (EWZ) .
Persons:
Bovespa, Fernando Haddad, Goldman Sachs, Alberto Ramos, Ramos, Arthur Budaghyan, Budaghyan
Organizations:
U.S . Federal, CNBC, U.S, Fed, BCA, Banco, MRB Partners
Locations:
Lower U.S, overcompensate, America, Banco Central, Brazil, U.S