Worst Stock Pickers Burned by Bovespa Rout: Corporate Brazil
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Brazilian analysts are proving to have the world’s worst record for picking stocks after failing to foresee how government intervention in the economy would curb growth and cut into corporate profits.
Stocks on the benchmark Bovespa index are trading 45 percent below the price targets that analysts set a year ago, the biggest disparity among the 45 markets in the MSCI All-Country World Index, according to data compiled by Bloomberg. Homebuilder Rossi Residencial SA and electric utility Centrais Eletricas Brasileiras SA are trading as much as 85 percent lower than prices forecast by Sao Paulo-based analysts at Itau Unibanco Holding SA and Barclays Plc.