Emerging markets experts are bearish on investing in Brazil regardless of the World Cup—but say fiscal reforms from a new administration could have a big effect.
"There's no upside for this government, even if everything goes well," Drausio Giacomelli, head of emerging markets research at Deutsche Bank, said Wednesday at the New York Society of Security Analysts Latin American Capital Markets Conference.
"It's not about (if Brazil wins the World Cup), it's about what it exposes: a government that's unable to deliver what they say the people need for education, for transportation, infrastructure in general," he said. "They can give stadiums ... but not what matters."
Brazil plays Saturday against Chile in the first game of the Cup's knockout round.