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Citi Latin American Equity Strategist Jason Press on why Brazil offers good opportunities for investors.
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We'll be IMF expects Brazil to grow 3% this year slower even Russia India and China.
But Jason Press says if you're bullish on global equities than you have to be bullish on Brazil Jason is the Latin American equity strategist at Citi.
-- is here with me now the Fox Business exclusive.
So if you look at Brazil a lot of talk it's been very popular over the last few years.
But the growth rate maybe not is -- gonna be there what do you say about result now we like Brazil a lot of growth have been -- American and emerging markets portfolio one big reason is the earnings script itself.
Does not necessarily match the GDP growth GDP forecast numbers not too far off with the IMF saying we have about three and a half percent GDP growth.
Vs the IMF -- 3%.
What is it with Brazil is it is that banks is that the industrials with and that country mean where we see the true growth coming in that country to you.
We do like the banks the consumer stories and the industrials over the commodity related stocks without a doubt that's where the liquidity is going into the market.
Both by the global investors themselves and also with -- the local investor base because of declining interest rates within that country okay we're talking about Brazil but our viewers of -- a look at Columbia we're talking about this in the break and break -- you need to.
Like Columbia I've -- positive things about.
With free trade being agreed upon a Columbia as a -- place for for new money to go to opportunity.
You're saying now show what I will say is that we do like Colombia a lot for the long term right now we don't like its entry point we think valuations are expensive.
And it does have the lowest -- with the all the Latin American equity markets what about China because there's been so much concern about the growth story in China.
China and India frankly both of them -- -- are really the key driver some supporters for the Latin American markets which can be set -- that's very true.
And then -- the consumers for the Latin American producers and I concerned about China and India point implement without a doubt -- our base case is that we're not gonna see a hard landing in China we have over 8% GDP growth in that country.
And if we do see a slowing of the GDP growth in China we think the People's Bank of China the Central Bank.
Will ease monetary policy more aggressively what somebody like Petrobras and I bring up that specific company because we can -- the ADR hear it in this country.
The CEO was just sort of big energy conference not even two months ago trying to sell the -- sell the stock to to money managers here in New York.
What do you make about -- -- and we do like Petrobras -- got a buy on that stock within the Latin American portfolio I do see other opportunities with greater upside.
There are some uncertainties with Petrobras particular with regards to the uncertainty in direction of oil prices.
And also with regard to the cost of accessing the pre salt oil fields off of revision there.
What -- -- things -- with a name like a Petrobras I mean is that obviously with a with higher oil prices you'll see a boost up but then you mention of their other names have been a group do you like war who also -- missing here beside the name that I know it's a shot from insurers so it.
-- doing enough -- -- actually been underperformance of the other oil related stocks.
When the stocks we do like is actually Colombian name ironically enough -- you don't like the market overall though we do like Pacific -- dollars itself.
And it does trade and Toronto's Bosnia and you also like you also like Mexico there's been a lot of big plays in Mexico the markets actually normally well shockingly enough Mexico's -- greats.
It's a market that's good in good times and also good and bad time to doesn't -- that is not some of the other higher beta markets such as I Brazil I think that that Mexico's probably a big surprise for a lot of our viewers Jason Press thank you very much what American equity -- -- -- -- thank you.
