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.

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

One thought on “After the rally in 2009, what to expect from Brazilian economy?

  1. 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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