Is Brazil the Next BRIC to Roll Over?

Is Brazil the Next BRIC to Roll Over?

The Contrary Investing Report > Stock Market Valuation > Is Brazil the Next BRIC to Roll Over?

Emerging markets appear to be in the process of rolling over – will Brazil soon follow India and China?

Though Brazilian shares have rallied in the past week, they still sit 6% lower year-to-date.  You’ll notice Brazil’s iShares ETF (EWZ) has been smacking its head on the 79 level since autumn – to no avail:

Brazil stock market crash 2011 EWZ

Well, at least valuations are cheap in Brazil…or maybe not!  Friend and astute correspondent Dr. Evil wrote in:

Small Cap stocks in Brazil as per BRF ETF Index at 2010

  • P/E 27.67
  • Price/book 3.92
  • Div yields 2.20

Yikes!

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