Economics
Credit Suisse Cuts Brazilian Stocks as Wishful Thinking Is Not Enough
- ’We have run out of motivation’ to own Brazil as overweight
- Equity index has climbed 63% in dollars in last 12 months
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Investors’ unabated enthusiasm for Brazil is starting to show some cracks.
About a year after upgrading the country’s stocks to buy, Credit Suisse Group AG is telling investors to take profits based on 10 reasons that basically boil down to the idea that the rally has gotten ahead of fundamentals. Credit Suisse says the real is overvalued, growth forecasts are underwhelming and equity valuations are too high.