FLBR: From Worst In The World In 2024 To 2nd Best In 2026 And The Window Remains Open (Rating Upgrade)
I am raising my recommendation on the Franklin FTSE Brazil ETF from hold to buy, citing strong forward drivers. Brazil's 2026 outperformance is driven by election optimism and the market's search for AI-resilient, commodity-sensitive economies. FLBR's valuation is undergoing multiple repricings, with potential upside if P/E multiples converge with emerging market peers.
FTSE Brazil ETF (FLBR) Hits Fresh 52-Week High
FLBR hits a 52-week high as Brazil's stronger currency and equity rally fuel momentum for the Brazil-focused ETF.
FLBR: What Happened In Turkey Could Happen Again In Brazil
I recommend holding the Franklin FTSE Brazil ETF due to improved momentum but caution over potential political volatility. President Lula's declining approval and potential trial of former President Bolsonaro could cause market instability. Despite strong performance, Brazil's macroeconomic issues and political risks warrant a cautious approach.
FLBR: Why Brazilian Equities Are A Strong Buy
FLBR: Why Brazilian Equities Are A Strong Buy
FLBR: Skeptical Vision Comes True
Recommend holding Franklin FTSE Brazil ETF due to inflation exceeding targets and increasing complexity in Brazilian investments. The government's spending cut package fell short, raising skepticism about Brazil's public debt trajectory. The Brazilian stock market has reached extremely cheap levels, but with justification.
FLBR: Skeptical View As Inflation Nears Target
I am downgrading my recommendation to hold the Franklin FTSE Brazil ETF due to deteriorating factors like the dollar and electricity prices in Brazil. Despite Brazilian assets being historically cheap, a new cycle of high interest rates will delay multiple expansions, making the risk/return unattractive. Potential risks include the Fed possibly cutting US interest rates, which could give Brazil's Central Bank room to maintain or cut rates later.
FLBR: Exaggerated Pessimism Opens Up An Opportunity
FLBR: Exaggerated Pessimism Opens Up An Opportunity
FLBR- Taking A Positive Stance Now
FLBR has delivered negative returns of 17% and underperformed emerging markets and global stocks in 2024. Despite the adverse performance so far, we are now prepared to turn more optimistic on FLBR as some key macro-economic variables are in a better place. Despite an unappealing payout in June, FLBR's yield of over 7.3% still looks very compelling.
