Saturday, September 26, 2015

In Brazil, They Really Love Pet Rocks


YTD, BOVESPA returns is -10.35%
1 year BOVESPA returns is -17.93%
5 year BOVESPA returns is -36.15%
10 year BOVESPA returns is 48.8% (annualized 3.6%)

As fed to us by all the modern day investment gurus, stock ETFs are the best investments ever, all the time!!! I guess if I was a Brazilian, I would have a home bias to my local stock market. Of course I wouldn't own any of those stupid barbaric "pet rock" relics! Only idiots own such a speculative non-cash flow producing asset, right?


Now add that to the fact that inflation has averaged around 5-6% over the last 10 years and you get pretty shit returns from the stock market.


YTD, pet rock returns in BRL is 44.2%
1 year pet rock returns in BRL is 54.9%
5 year pet rock returns in BRL is 104.5% (annualized 15.4%)
10 year pet rock returns in BRL is 334.1% (annualized 15.8%)

I'm not saying that Brazil and Singapore are in the same situation. We are vastly difference economies. All I'm saying is that if I was Brazilian, I bet I'd definitely be glad if I had some pet rocks.

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