* Amid stagnant growth and high inflation in 2013, Brazil's equity market was one of the worst performers, the real was a chronic underperformer and the corporate sector struggled.
* Brazil needs to anchor economic policy around a stringent and credible primary surplus target rather than run the current mix of loose fiscal policy, subsidized public credit and ever tighter monetary policy.
* Valuations are attractive, but unless an effective policy mix is restored, the outlook for order in Brazil's financial markets is less certain.