With the prospect of base interest rates in Brazil continuing at low levels for a while and the scarcity of investment opportunities in the Bovespa stock market, there’s a intense search for yields elsewhere on the global market.
Figures from the funds industry clearly show such demand. The amount allocated abroad almost tripled, going to R$36.96 billion in December 2012 from R$12.99 billion in late 2011. As the chart shows (source: Valor Economico), the trend clearly accelerated in the second half of last year.
Source: Valor
and we were all fooling ourselves over Brazil’s capacity to fuel growth… but i only see growth of their politicians own pockets http://www.thelocal.com.br/economic-information/wave-of-bad-news-for-petrobras/
The credit bubble is still inflating in Brazil. The blowup will be noisy.