HSBC Downgrades Brazilian Stocks, Labels Them ‘Classic Value Traps’

HSBC has downgraded Brazilian stocks from neutral to “underweight,” citing pessimism about the country’s economic outlook. The bank’s analysts, Alastair Pinder, Nicole Inui, and Herald van der Linde, labeled Brazil a “classic value trap” in their recent report. The analysts acknowledge that Brazilian stocks are cheap. The price-to-earnings ratio for the next 12 months stands […]