BTG, Quantitas Say Ibovespa at Decade Low Has Further to Fall
- Ibovespa's trading at lowest level since 2005 in dollars
- Political crisis, recession may deepen rout, BTG analyst says
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A rout in Brazil stocks has sent the Ibovespa to the lowest in a decade. That’s still too high for some investors.
BTG Pactual SA and Quantitas Asset Management say political gridlock and the worst recession in more than a century threaten to deepen a selloff that has already sent the Ibovespa tumbling more than 9 percent in dollar terms in the first few days of the year. It follows five straight years of losses that wiped out 70 percent of the benchmark stock index’s value.