While the potential impeachment of Brazilian President Dilma Rousseff is seen as positive by some investors, Loomis Sayles & Co.’s Edgardo Sternberg says it would probably lead to more political confusion and a deeper fiscal impasse.
“The market thinks impeachment would be a good thing,” Sternberg said at a conference Thursday at Bloomberg headquarters in New York. “We take an opposite view. If there is one and the market rallies, from our perspective, it’s a good point to reduce positions in Brazil.”
A group of high-profile lawyers filed a request on Wednesday to impeach Rousseff, bringing closer a decision on her political survival after months of uncertainty that have paralyzed Congress, rattled financial markets and deepened an economic slump.
Brazil Energy Insight 
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