The Brazilian economy is in the midst of a slowdown. After years of having strong economic growth the emerging market had a moderate growth of 2.7% in 2011 compared to 7.5% in 2010. This year the economy is projected to expand by just 1.5%. However the GDP is estimated to grow by 4.0%. In order to …
Continue reading ‘Beaten Down Brazilian Electric Utilities Offer Attractive Investment Options’ »
The theory that emerging markets are decoupled from developed markets did not hold well during the current turmoil in global equity markets. Emerging market stocks have also fallen sharply in tandem with others. For example, while most of European countries are down more than 20% and the S&P is down 6.5%%, Brazil’s Bovespa is also …
Brazilian stocks have been hit hard in recent months as investors have become increasingly worried about many economic factors including inflation, over-heating of the economy, commodity price volatility, buildup of a credit bubble, etc. Some of the reasons for this fear are well-founded as confirmed by the following data: Growth of credit in the last …
Continue reading ‘EuroMoney: There is No Credit Bubble in Brazil’ »
The Bovespa Index is down over 20% YTD. Compared to Chile and Mexico, Brazil’s performance has been worse so far this year. However Brazil continues to be the most attractive investment destination in Latin America for foreign investors. For example, Brazil ranked 5th in Foreign Direct Investment (FDI) with about $48 billion flowing into the …
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The BM&FBOVESPA Public Utilities Index(UTIL) is one of the four new indices that started trading on the Brazilian market this month. This index is composed of companies in the public utilities sector (electric energy, water and sewage, and gas).The index components are selected for their liquidity and weighted in the portfolio by the market value …