Brazil a buy on possible World Cup victory


Buy Brazil, says Goldman, predicting that country's soccer team will win the World Cup and noting the victorious country's stock market historically outperforms global equities by 3.5% in the first month after the win.

"Enjoy the gains while they last," though, says Goldman's Peter Oppenheimer, noting the outperformance quickly fades.

The Bovespa has fallen 7% Y/Y, though it's been one of the stronger equity markets globally over the past two-three months. The matches begin on June 12.

ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ

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Comments (4)
  • Deja Vu
    , contributor
    Comments (1824) | Send Message
     
    Bet on Black at the Las Vegas Casino says Goldman, because traditionally when Jupiter is opposed to Venus in the night sky, black wins more reliably.

     

    Forget the fiscal crisis brought upon by the welfare policies of the Rousseff which has brought huge inflation and the economy to its knees. Forget the crazy investments in white elephant infrastructure and the debt service on those. Forget the ever increasing taxes on the private sector to pay for the tottering welfare regime. Forget foreign exchange risk and capital control risks.

     

    Yaaay, just invest because some country might win a soccer tournament...Yaay for Goldman, the American Yakuza...

     

    p.S. let me guess someone in the vampire squid wants to turn a quick month end profit by selling Brazil ETF's....
    28 May 2014, 08:50 AM Reply Like
  • Patent News
    , contributor
    Comments (1475) | Send Message
     
    yeah sounds about right short brazil is what they meant!?
    28 May 2014, 09:07 AM Reply Like
  • Johann Galt
    , contributor
    Comments (247) | Send Message
     
    by all of which one can safely assume Goldman wants to go short Brazil
    28 May 2014, 09:11 AM Reply Like
  • Dugly
    , contributor
    Comments (65) | Send Message
     
    Any claim to preeminence among financial institutions Goldman might have had is hereby dispelled.
    28 May 2014, 12:13 PM Reply Like
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