It's like 2008 never even happened... at least for Brazil.This year, the question for almost any country's stock market isn't "if" it is rising, but "how much." Brazil answers with, "So much that we're near an all-time high."
As you can see from today's chart, Brazil's benchmark stock index has rebounded to pre-crash spring 2008 levels... and is close to its all-time peak reached last May. It's an amazing rebound few countries can claim.
It's a rebound driven by a big rally in commodities this year. Brazil is home to Petrobras, one of the most successful major oil firms of the past decade (up 100% this year). It's home to Vale, the world's largest iron ore producer (up 113% this year). And Brazil has a unique agriculture "kicker." It has vast quantities of rich farmland and fresh water... which make it a major producer of coffee, livestock, orange juice, soybeans, and sugar.
Brazil's "it's like 2008 never happened" rebound leads us to tag the country the "Ferrari of emerging markets." If commodity prices remain robust over the coming years, this market will double from current levels and double again.
No comments:
Post a Comment