It’s a fire sale! So says famed Brazilian entrepreneur and board chairman at Brasil Foods, Abilio Diniz, during a meeting with investors in New York this week.
“We don’t have an economic crisis in Brazil. It’s just a political crisis, which has destroyed confidence…no one is investing,” he said. “Brazil is not growing, it’s contracting. But once we pass through this moment of uncertainty, once we resolve this political crisis, the economy will turn very, very fast.”
Investors are still waiting. Back in April, Gradual Investments CEO Fernanda de Lima said she felt the end was near in Brazil, meaning the bottom was in sight. It only got worse. Calling a bottom has been fool’s gold at this point. The only safe bet on the Brazilian economy has been the currency. Negative sentiment drives it. The Brazilian real is unlikely to hold court in the 4s for long even as China and the U.S. slow.