A survey by consultancy Austin Rating pointed out that Ibovespa had the second worst performance among 79 countries between December 2020 and November 2021, only behind Venezuela.
In an interview with CNN Radio, Austin Rating’s chief economist, Alex Agostini, said that the stock market crash “denotes that it was not just the pandemic that affected investors’ expectations”. He attributed the picture to the “troubled domestic environment that Brazil has lived in since 2014”.
“Since when the country got into the fiscal problem of spending more than it collects, it lost confidence among investors and consumers, there is an environment of anticipation of the electoral race, increase in interest rates, inflation, naturally there is this drop”.
Even so, the economist said that “even if there is a drop, there are stock opportunities”.
“The recommendation is that, before investing, study, understand how it works, a fall is not always a loss”.
He even gave more tips: “It is important to look at opportunities and study by sector, the oil and gas sector, for example, is ok, retail not so much, even in this fall there is also opportunity, the main recommendation is to diversify, do not put all your eggs in one basket .”Agostini believes that the year 2022 will be a “delicate moment”:
“It will still show a growth in the latest placements, the return on shares should be low, the country only grows if companies sell and produce, there are houses that speak of recession or low growth.”
“The stock market should slide, it is a long-term process that can improve, in the short term, for next year, the scenario is not very positive”, he added.
Reference: CNN Brasil