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3 reasons to short Brazilian equities: Garnry

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March 07, 2016 brazil, brazil economy, brazilian, brazilian equities, brazilian real, commodities, commodities markets, commodity market, commodity prices, commodity strategy, dollar, dollar index, dollar outlook, dollar strength, dollar trading, em, emerging, emerging currencies, emerging market, emerging market economies, emerging markets, emerging markets growth, emergingmarkets, equities, equities trading, equity index, equity market, equity portfolio, equity research, equity strategy, equity trading, garnry, industrial metals, metal, metal industrial, metals, rally, saxo tv, tradingfloor.com, tradingfloorcom, us dollar, usd
Brazilian equities are up 26% from the lows in January. Saxo's Peter Garnry asks whether the rally can continue. He gives 3 reasons why he thinks it is running out of steam and why this might be a good shorting opportunity. 

Firstly he thinks the rally in metals will be short lived. He also points to a stronger US dollar which will hurt Brazilian growth. And lastly, how the P/E evaluation is on the high side compared to other emerging market economies.