Look at the Brazilian ETF EWZ ( quote ) and the global emerging markets fund EEM ( quote ) to compare: This is one of the best and brightest emerging markets, but it also has a reputation for being susceptible to inflationary pressure. Since peaking in early November, the Brazilian market is now down 10%, and even counting last year's surge, these stocks have gone nowhere over the last 16 months. Since the start of 2010, domestic investors in Brazil have watched their investments unravel by 6.5% on a local currency basis.