Larry Berman CFA, CMT, CTA
Itau Unibanco Holding S.A.
ITUB-N
COMMENT
Nov 01, 2021
These two are the biggest banks in India and Brazil. You can't buy ETFs of sectors in specific countries right now such as a Brazilian banks ETFs.You can only do it if you are in these countries. Buy the banks themselves.
Largest bank in Brazil. Well run organization with strong balance sheet. Descent entry price. Dividend yield is relatively low. Deposit base and loan book are growing at 16% per year instead of our 5%. Risk is deterioration in the economy. One of the best managed banks in the emerging markets.
2nd largest Brazilian bank. Pure banking play. Sees the Brazilian market continuing strong. Some indications of inflation but not to the same extent as in India or China. Good way to get emerging market exposure.
Frustrating recently. Dragged down with Brazilian market. Pure play on Brazilian economy. Quite content to hold on to it. Their economy will struggle for some time. Patience might be needed.
(A Top Pick Jan 6/11. Down 24.9%.) Largest private sector bank in Brazil. Continues to grow at a nice clip. Competent that it will be twice as large in assets and earnings in about 4 years.
She likes this bank. One of the best performers in 2016, and expects the same for 2017. Benefiting from better commodity prices and a more stable government. Banks benefit very much from a normalizing economy and interest rates that are no longer out of control.
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