Economics
$2.4 Trillion Manager Says It's South Africa's Brazil Moment
- Bolliger says look to Brazil to anticipate South Africa moves
- Favors rand as well as South African stocks and bonds
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A corruption scandal that led to a political transition and economic reforms was the recipe for a rally in Brazilian assets, and South Africa is at a similar turning point.
Michael Bolliger, the head of emerging-market asset allocation at UBS Wealth Management, says South Africa’s new leader and the corruption charges lodged against former President Jacob Zuma on Friday are setting the stage for a repeat of what happened in Brazil. The stock market there has more than doubled and the real has surged 18 percent since early January 2016, when investors began betting on a change in government.