In fact, Brazilian small-cap stocks have risen to their most expensive level in three years versus large-cap shares, Bloomberg reports.
Brazil is one of the so-called BRIC countries along with Russia, India and China.
Jim O’Neill at Goldman Sachs, who coined the term BRICs, is upbeat on Brazil’s economic growth potential.
“For starters, he thinks the steps Brazil is taking to jumpstart its economy–from lowering energy costs and improving the tax environment–justifies ignoring the country’s recent economic slowdown. O’Neill doesn’t think the slowdown will last long and thinks the country can grow by 4-5%,” Barron’s reports.
“As often with Brazil, the mood has swung too far to the other side of reality…Within a few months, that mood will be back,” O’Neill wrote in a note.
Brazil will host the 2014 World Cup and 2016 Summer Olympics.
iShares MSCI Brazil
