After the rally in 2009, what to expect from Brazilian economy?

In 2009, Ibovespa’s (Brazilian equity index) poised a  performance of +145% in USD. How will it behave in 2010? Is it possible that Brazilian economy will deliver a higher return than developed economies? Many analysts are predicting that the index will reach over 82.000 points in 2010.  It is a fact that  Brazil country risk has come down significantly in the past 5 years.  The country is now trading around 13x P/E and might come to 16x according to BTG PACTUAL estimative.   This number would mean a 10% premium to the S&P500. Domestic demand is expected to continue expanding and is seen as a hedge to  global economy.

About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She is a fellow researcher of the Centre Roland Mousnier at the Sorbonne University and a member of the Brazilian Investment Analysts Association (APIMEC-Rio), where she served as Corporate Relations Director and later, on the board. Hildete advises companies and investment agencies in international business development.
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1 Response to After the rally in 2009, what to expect from Brazilian economy?

  1. Camilo says:

    I concur. The major point is to be aware that after the next boom of IPOs (until mid-year) and as following high capital inflows, we may suffer concurrently setbacks from the withdraw of it, for risk aversion once more will eject our high liquid market.


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