Loading ...News - Brazil Will Perform Better Than Mexico, Morgan Stanley Says
Jan. 30 (Bloomberg) - Brazilian equity markets will likely fare better than Mexican stocks during the economic crisis because the South American country has a better growth outlook while Mexico is overvalued, Morgan Stanley said.
Brazil’s “sound” financial system, along with its status as a creditor and lower public sector debts will give Latin America’s biggest economy “leeway (previously non-existent) to deal with the issues that will arise,” global emerging markets strategist Jonathan Garner wrote in a note dated yesterday.
Mexican equities are “not priced for disappointment” and valuations are at the highest level in 10 years, he wrote. Mexican stocks are trading at a ratio of price to earnings that is 40 percent above emerging-market averages, a premium that is “unwarranted,” Garner wrote.
Source: Bloomberg.
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