Stephen Kanitz

Brazil Stock Market Reaches a 6-Month High

Average PE Ratios around 5, if you exclude dividend stocks like Eletrobras.
Real interest rates have plummeted from 9% to 4%, which means Brazilian pension funds will have to increase stocks from 20% to 60% of their portfolio. Same bondholders. Dividend yields in Brazil are around 4% a year.
So by 2019, earnings should double, minimum, and PE ratios may become developed country style, say 20. That is a 10 fold increase in 10 years.
So let be go on record saying that Brazilian Shares will increase 600% in 10 years, to be conservative, versus 35% in treasury bills.