September 1, 2009
by John RumseyBrazilian markets are again à la mode. The economy and consumer spending are improving and as all eyes turn to China, the halo of Brazils BRIC status and depth in commodities excites investors scouring the globe for reasonably-priced growth. The fly in the ointment is a big tussle over valuation and fears of a return to the irrational exuberance of the last boom. Investors have underpinned a rise from lows of less than 30,000 in the Bovespa index last October to 41,518 at the turn of the year to levels of over 54,000 in late July, a rise of 30% year-to-date. The market is one of the best performing in the world and beaten only by Peru regionally, which is up more tha
Brazil is firmly back on the world equity map, following a slew of blowout deals. Some fear a return to the reckless conditions of 2007, and investors are wary.