Credit Suisse Group strategists led by Andrew Garthwaite kept
their "neutral" recommendation on Brazil's stock market as
still-high consumer debt ratios, an overvalued currency and
growing state intervention with protectionist moves in some
sectors are likely to hamper performance and perception.
Garthwaite and his team also mentioned as reasons the end of an
interest-rate cutting cycle and a difficult environment for
banks and utilities.
Still, the strategists reckon that growth will be stronger
in the coming quarters and that the government will not allow
the currency to rise from current levels. According to
Garthwaite, Credit Suisse's preferred sectors in the country
currently include real estate, industrials, healthcare and