Now that, some of, the political dust has settled, what´s in store for the Brazilian economy and the outlook for the principal stock exchange, the Bovespa?
In 2017 global emerging markets stocks and currencies posted their best return since 2009. And even after this robust performance emerging markets continue to offer attractive investment opportunities as economic growth outpaces the developed world in 2018 (4.9% vs 3.3% forecast growth this year (Shroders)), current account deficits improve, political volatility moderates and structural reforms…
The focus of this article is to look at the investment potential in Brazilian blue-chip banks. But let´s quickly recap the macro view around Brazil, which as always, is dynamic. The current market consensus is that even after the strong rally in the Brazilian equities (+20%) and currency during the last 12 months (note the…
In a previous article on these pages, I examined the outlook for the Brazilian Stock Exchange – the Bovespa – and asked the question if it could sustain 2016’s rally, which made it one of the best equity performers last year with an 80% year on year uptick in dollar terms (+39% in local currency…
After three years of subdued performance, there are once again signs of life for Emerging Market equities, including Brazil. By the end of 2015, the main Brazilian stock market, the Bovespa, had seen five years of annual negative performance – the longest in dollar terms since 1983 – as the index became a lightning rod…
Are tech valuations supported by fundamentals or are we partying like it’s 1999? 16 years since the bursting of the dot.com bubble, when the Nasdaq Composite Index fell 37% in the 10 weeks following its peak on March 10, 2000, the continued stellar performance of tech stocks and startups is once again raising eyebrows in…
With the XXXI Olympiad coming to a close in Rio de Janeiro, it’s a good opportunity to take a look at the effect of the summer games on global – and host country – stock market performance during the Games and moving forward. There are a lot of common themes between the Olympic games and…
Are we entering a “new normal” in asset valuations? In an interesting recent piece in the Telegraph, Tom Stevenson, investment director at Fidelity Worldwide, suggested that the current trend for central bank negative interest rate policies (NIRP) that we are seeing across the globe – and their subsequent impact on rising equity values – could…
The expression “may we live in interesting times” could have been written with the principal Brazilian stock market, the Bovespa, in mind. Its performance since 2010 – when the author moved to the country – has been a rollercoaster ride. Six years ago with BRIC-mania at its height, the economy was growing at over 7%…
