This thing is gonna blow in the next few days. Former president "Lula" (same political party of the current president) was detained this morning and will be legally required to give explanations, with no release date. This is an important phase of the "Carwash" operation.
Potential Soros reflexivity on brazilian markets going forward. as sentiment improves, so will business investment, consumer spending, etc. this will improve the economy and give reasons for stocks to rally further. a self reinforcing cycle. Be careful about playing this short, unless its a daytrade, you might be surprised of how high things go
I can't see consumer confidence and spending going up in the short term. Anyway, unemployment skyrocketed so I would not bet on business investment either, not in the next 2 years. Of course the market anticipates the economic data, but I still think it's early. This rally, in my opinion, is short lived.
I can see where you come from. We also see downgrades at the bottom, and it's happening. But I can't deny the fact that the government is increasing taxes, making it more difficult to run businesses (instead of attracting investments) and that we don't have anything to export besides oil and some minor commodities, so a devaluated currency doesn't help.
valuation trumps all of this, a lot of that (plus more was already in the price). It was the one of the lowest CAPE ratio (shiller PE) of any country out there. it doesn't take much to get things going
Agreed, I'm not dropping my Bradesco, Itaú, AmBev and CETIP shares. They are all great and solid companies in the middle of this hurricane called "Brazil".