“The discount is not in the shares, it’s in the interest,” says Kinea
A Bolsa brasileira parece barata em quase toda métrica conhecida – mas está assim há tanto tempo que a constatação perdeu o sentido, diz a Kinea. Num novo relatório, a gestora lembra que o prêmio de risco do mercado local – o retorno adicional das ações em cima dos títulos públicos – está em torno […] The post “O desconto não está nas ações, está nos juros,” diz a Kinea appeared first on Brazil…
The Brazilian stock market appears cheap by most metrics, but this has been the case for so long that it's lost its significance, according to Kinea. The local market's risk premium, which is the additional return on stocks over public bonds, is around 4%, below the historical average of 5%. Kinea suggests that investors should diversify their portfolios by combining stocks of companies that perform well in a high-interest-rate environment, such as utilities and construction companies, with those that could increase in value if fiscal policy changes and interest rates fall, like banks and retailers.
The firm recommends stocks including Sabesp, Eneva, Orizon, Cury, and Tenda, and also suggests Bradesco, BTG Pactual, Itaú Unibanco, and Santander as potential winners if the economic scenario changes.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
