EFTA Document EFTA01451011

11 December 2013 GEM Equity Strategy Outlook 2014 LATIN AMERICA Brazil - cheap but fundamentals continue to deteriorate Brazil has been by far the worst performing major emerging market over the past three years, mainly because of the dramatic policy shift towards state capitalism, which has taken place since the financial crisis. The propensity of the government to intervene in the corporate sector is reflected in the ongoing de-rating of the state-controlled listed companies in both ab