Venture: LATAM Natural Resources
Issue 93;
This week’s GTI models showed strength in Brazil. Being a relatively minor market, with 42 stocks worth a combined $500 billion, it didn’t light up the spreadsheets, but it was a clear trend. The market is cheap and has historically moved in sync with commodity prices. It was also interesting to see Brazilian banks improve while still trading at low valuations.
While gold and silver prices are up 3x or more over 10 years, the best of the industrial metals, copper, is up 2x, with the rest lagging behind. It seems more likely than not that industrial metals will catch up, as they have in previous cycles.
Industrial Metals Prices
I have always liked the Brazilian market, as I’ll never forget the 2002 to 2008 bull market. Returns were so high that it has spent the last 17 years allowing the rest of the world to catch up.
Brazil Relative to the World Total Return
Saúde!
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