HALISTER1: Brazil Growth Stronger, Politics Not in Focus Next Qtrs: Verde

Brazil Growth Stronger, Politics Not in Focus Next Qtrs: Verde

(Bloomberg) -- Brazilian economy growth is showing signs of a stronger pace, with better consumer and business confidence boosting consumption and the investment outlook, Verde says in its September management report.
  • Political scenario "practically does not matter, at least for the next two quarters"
    • Temer’s unpopularity is "irrelevant," "global liquidity gives Brazil a free pass to not make reforms (for now)"
  • Sustainability of growth in the medium term is questionable
  • Portfolio remains fairly allocated in real interest, most of the stock portfolio hedges have been zeroed
  • Says market exaggerates in optimism, but it is still possible to find good options with reasonable valuation
    • Highlights financial sectors, electric power, shopping malls, discretionary consumption and health
  • Verde FIC FIM performance in September was +0.51% vs +0.64% for the CDI
Original Story: Verde vê economia mais forte; política não importa curto prazo To contact the translator on this story: Giulia Camillo in Sao Paulo at gcamillo@bloomberg.net Reporter on the original story: Giulia Camillo in Sao Paulo at gcamillo@bloomberg.net Editors responsible for the original story: Giulia Camillo at gcamillo@bloomberg.net Leonardo Lara

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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