Informação jurídica inteligente
 Brasil | +55 (11) 31 81 77 29

‘Brazilian equity market is extremely undervalued’, expert says

Document Citado por Related
Vincent

The expected start of the benchmark interest rate Selic reduction and the greater political stability that Brazil is experiencing today will make the country one of the most attractive markets globally over the next 12 to 18 months, according to Todd Jablonski, the chief investment officer with Principal Asset Management. In an interview with Valor, the executive said that greater clarity regarding the interest rate reduction cycle will be the necessary trigger for investors to increase their exposure to the country."The Brazilian equity market is extremely undervalued, despite the gains in recent months, and that creates opportunities," he said. "Historically, Brazilian stocks have only been undervalued about 5% of the time. The other 95%, they have been more expensive than average," he says. According to Mr. Jablonski, there are very good opportunities in stocks across all sectors. "In the U.S., for example, stocks are cheaper than average 90% of the time, and undervalued in only 10% of the time."For Mr. Jablonski, the recent political risk is part of the reason Brazilian equity valuations are cheap, just as they are in Chile. Now, he believes that greater Brazilian political stability and the effects of pension and tax reforms could give the country the growth boost it needs to improve its fundamentals and thus attract more investors. "All of this will increase production capacity and allow Brazil to grow between 150 to 200 basis points faster as companies increase their efficiency and profitability," he said, adding that attracting investors may add the equivalent of two to three percentage points to Brazil’s exposure to the MSCI emerging markets index.The executive also welcomes investments in Brazil’s corporate bonds, which are high-quality investment-grade company securities. According to him, funds with these bonds can yield up to 13%. "Right now, I prefer corporate bonds to Brazilian government debt," he said, given the country’s growth potential.Although he sees Brazil’s potential to be among the top five investment destinations in 2024, Mr. Jablonski says Japan and Mexico are better positioned at the moment, and Principal sees greater exposure in those...

Para continuar a ler

PEÇA SUA AVALIAÇÃO

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT