The turn in handbagwhich has suffered since the beginning of the cycle of high interest rates in March 2021, is close to happening, says manager José Rocha, from Dahlia Capital, in yet another episode of the market makers.
Currently, the Ibovespa (IBOV) has a price on earnings (P/E) of 5.45 times, the lowest level since the first term of the president’s government Lulastill in 2002, according to the Oceans 14 platform.
For him, there is no silver bullet capable of making the bag react. “You U.S need to stop raising interest rates, China reopens and then the dollar drops below R$ 5″, he argues.
However, if interest rates here in Brazil go down, something the market expects to happen in the second half, that will be the ‘main catalyst’.
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“It’s cheap for chayote. Iguatemi (IGTI11) is cheap. Take the upside (upside potential) of Eletrobras (ELET3), find (RENT3), Bank of Brazil (BBAS3). Having the upsides at the levels they are today is an atypical business. When you talk to mega-investors like Luiz Alves, Luiz Barsi, what are they doing now? That’s a good question to ask,” she argues.
He also recalls that the leasing on the stock exchange in Brazil is the lowest ever by metrics. “It is a historic moment. The (end) of the bear market (falling market) is in the 45 minutes of the 2nd time. Brazil just needs to get a 6 and pass the year”.
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Is the bag cheap?
And it’s not just managers who are optimistic about the stock market. Even with the 6% recovery this month, the Investment Guide points out that the index is still discounted and may rise further.
“Part of the explanation for the increase is in the greater conviction in the fall of the Selic rate still in 2023 (recent data and the Central Bank communication were in this sense) and part is in the reduction of short positions in our view”, he writes.
Still according to the brokerage, the shares still have a long way to go before they cease to be a good investment option.
Source: Moneytimes
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