Brazilian Investors Overlook President's Indecency Amid Market Record Highs
Investors seem to care more about capital gains than human decency as they praise Brazilian president Jair Bolsonaro, according to The Wall Street Journal.
Brazilian President Jair Bolsonaro has been accused of destroying the environment, endangering human rights, offending women, and making anti-gay remarks. Even after all of these accusations and evidence to support them, companies looking to raise money love him.
Stock offerings in Brazil this year has increased 5 times over from 2018 numbers. There were 32 IPOs in the first 10 months of 2019 compared to 6 total in 2018. Capital markets analysts are forecasting this number to double next year.
President Bolsonaro has been revamping the Brazilian economy, the largest in Latin America, and attempting to draw investors back into the market. Stock prices in Brazilian markets have risen 20 percent this year, hitting record highs.
“A lot of things we’ve been waiting a long time to fall into place in Brazil are finally getting done,” said Verena Wachnitz, portfolio manager of T. Rowe Price’s Latin America Fund.
Investors have overlooked President Jair Bolsonaro's indecency amid record highs in Brazilian stock markets.