Cross your fingers…

HSBC’s Pedro Bastos said that Brazilian stocks will extend their rally as overseas demand for the country’s commodities and interest-rate cuts push investors into equities. He told Bloomberg that the index will reach 75,000 by year-end, surpassing the record of 73,516 set in 2008 (it closed today at 66,000).

“The market still hasn’t recovered to where we were in 2010, so when you look at Brazil, it still seems a very attractive market. The government is trying to make local interest rates converge with the Latin American average. So there is still a lot of room to still cut rates and that will boost the migration of local investors to the equity market.”

We have written couple months ago about all the 2011 and 2012 stock market forecasts made by several brokers in Brazil, and how off was everyone. But one thing is for sure: no one was as off as Santander Corretora, who predicted the Bovespa to reach 89,000 points last year! It definitely won the Oscar for the most outrageous forecast…

Anyway, let’s hope Pedro Bastos is right… but if you lose money, don’t forget his name.

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