Brazil’s CAPE ratio is approaching one of the most undervalued levels in its history. The Brazilian equity market is nearly as cheap as it was at major historical bottoms — the early 2000s and the political crisis of 2015–16. This is a region-wide thesis involving all of Latin America, which is undergoing a fundamental transformation that is likely to attract foreign capital in a way it hasn’t in decades. Brazil, in my view, will likely be a major beneficiary. Let’s examine one opportunity in particular.

$105/bbl A few months ago many said this would never happen. Never bet against inflationary assets in an inflationary era. Deglobalization is structural no cyclical. Watch food prices next. In a world of extreme inequality, with a Fed that needs lower rates to keep the government afloat, rising food costs rarely end quietly. Social unrest tends to follow.

This is incredibly important.