As an example of how interconnected the global economy is, international real estate stocks are hoping Federal Reserve Chairman Ben Bernanke will initiate stronger economic stimulus measures when he speaks this Friday at the economic policy summit in Jackson Hole.
Look to the Brazilian real estate stocks for evidence for the wisdom of trading both long and short where emerging markets are concerned.
These are exciting times for a market that has lost 9.5% over the last two years between a sagging currency and a drumbeat of setbacks for the local heavyweights. That’s right, we’re talking about Brazil.
In the current low interest rate environment where the strongest expansion is in emerging markets, there are three Latin American stocks investors seeking alpha should check for both growth and income.
Traders who have developed a love/hate relationship with Brazilian construction stocks over the last year may be falling in love again if sector bellwether Gafisa (GFA, quote) reports earnings anything like what broad-based developer Cyrela Brazil Realty (thinly traded here as CYRLY, quote) put on the table.
Banco Fator has released its latest forecast for homebuilding in Brazil urging caution and pointing out that the sector may face even tougher challenges in 2012.