Brazilian stocks could lose as much as 10% of their value by August as inflation accelerates and interest rates rise, according to a recent report by Citigroup. This from Bloomberg:

Citigroup strategist Geoffrey Dennis forecast the Bovespa stock index may drop to 65,000 by ‘mid-summer’ from the May 30 close of 72,592.50. The index fell 1 percent to 71,897.25. The New York-based strategist kept his end-year forecast for the Bovespa at 74,000.

“Our mid-summer sell-off is 65,000 on the Bovespa, based on a big pullback in domestics, as interest rates and inflation rise,” the strategist wrote in a note to clients. So-called domestic stocks are shares in the consumer, industrial, utility, financial and telecom industries.

Sandy Franks in Taipan Daily, however, says that Brazil is an essential addition to your investment portfolio.

“Not only that, but investing in Brazil is a great way to protect your money against the falling U.S. dollar, the slumping U.S. economy, and the risky U.S. stock markets. And because Brazil’s economy is growing leaps and bounds, a modest investment today could grow fivefold in the coming years.

“Let me put it this way: To ignore investment opportunities in Brazil would be a horrendous mistake that could cost you dearly.”

Read on here to learn how to make maximum profit from a blue chip Brazilian mining conglomerate.