EWZ

iShs MSCI Brazl Shs

Macro


Presented:08/21/2023
Price:$30.22
Cap:N/A
Current Price:$28.40
Cap:N/A

Presented

Date08/21/2023
Price$30.22
Market CapN/A
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/SN/A
Ave Daily VolN/A
Short IntN/A

Current

Price$28.40
Market CapN/A

Publicly traded companies mentioned herein: N/A

Highlights

The presenter considers the Brazilian equity market attractive and a long position in iShares MSCI Brazil ETF (EWZ) as the simplest way to express that. The market multiple is currently 8x earnings, and he sees a mismatch between this valuation and the outlook for interest rates. Investor sentiment is low based on massive rate hikes over the last two years, causing a shift out of equities and into fixed income. The market’s lack of comfort in Brazilian equities was exacerbated by the results of the 2022 presidential election, where left-wing candidate Luiz Inácio Lula da Silva won despite concerns that he is fiscally irresponsible. Brazil’s equity market remains dislocated despite the recent start to the rate cutting cycle and the market’s implied expectation for ~400bps of incremental cuts between now and January 2025 based on current forward rates. While the equity risk premium is too high considering current interest rate expectations, the presenter is incrementally bullish, expecting ~500bps of rate cuts during this timeframe. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.