There were some ups and downs. In 2021, most investments lost to inflation, both measured by the IPCA (Extended Consumer Price Index) and the IGP-M (General Market Price Index). The exceptions were Bitcoin and BDRs (Brazilian Depositary Receipts), receipts for shares of foreign companies listed on B3.
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“There was a lot of expectation regarding a rapid recovery of global economies and with the end of the pandemic and the normalization of economic relations ”, says Rafael Bevilacqua, chief strategist at Levante, in a report. “Part of it actually happened. However, throughout the year, investors had to live with unexpected movements in asset prices”, he evaluates.
The news is bad for investors, because it means that it was more It is difficult to obtain a real return – above inflation – on investments. In practice, it represents how much the investor actually earned, ensuring the maintenance and growth of the purchasing power of money over time. Understand the importance of real return on investments by clicking here.
On the stock exchange, the Ibovespa, main Brazilian stock index, fell by 11.93% in the year, marked by strong turmoil amid the perception of greater fiscal risks. With presidential elections ahead, in addition to the news about the pandemic and inflationary pressure here and around the world, the harbinger of continued volatility in 2022.
Performance, of course, was not uniform between actions. There were highlights, such as the roles of exporting companies – Embraer (EMBR3), for example, advanced more than 180% in the year , while Braskem shares (BRKM5) rose more than 170%. On the other hand, for companies linked to domestic consumption, mainly with exposure to e-commerce, the year was bad, after having shone in 2020.
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There have even been some attempts at an “end of year rally” – among real estate funds, for example. After four months in the negative field, the IFIX – index of the most traded FIIs on the Exchange – rose 8.78% in December, the highest monthly increase since December 2019. It brought encouragement to investors. It was not enough, however, to reverse the losses of previous months (the index ended the year with a drop of 2.28%).
“The expectation of lower interest rates ahead and the significant discount with which the shares of real estate funds were being negotiated represented an opportunity for new allocations”, evaluates Rafaela Vitória, an Inter analyst, in a report on FIIs.
Although recent inflation rates still indicate that the advance of prices remains strong, Rafaela foresees a cooling down from now on, with a consequent accommodation of interest rates. “We maintain our view that fewer Selic hikes will be needed in 2022, as inflation begins to subside and economic activity also continues to be weaker”, he says.
Fixed income
Despite the increase in interest occurred throughout the year, those who invested in conservative fixed income investments were also unable to obtain a positive real return. The basic rate (Selic) left 2% a year in January and reached 9.25% in December. In the accumulated, however, the CDI rate – the main reference for fixed income investments – was 4.35%.
Likewise, those who kept the money in savings accounts also did not went well: the book yielded 2.99% in the year, even with the change in the form of remuneration precipitated by the increase in Selic, as of December.
Those who sought protection against inflation in public bonds indexed to the IPCA had to contain their emotions. Due to the volatility of interest rates over the months, these papers depreciated – the fall, on average, was 1.51% in the year, as shown by the result of the IMA-B, an index that tracks the prices of IPCA+ Treasury bonds (Notes of the National Treasury Series B).
Whoever kept the papers in the portfolio did not pocket this loss. It is worth remembering that, if preserved until the maturity date, inflation bonds yield exactly what was agreed on the investment date (a fixed rate plus the variation of the IPCA). Mid-way redemptions, however, are subject to market variations, as they are paid based on the securities’ trading prices at the time.
Due to volatility in both equity markets as well as fixed income, multimarket funds – which invest shareholders’ money in different asset classes – struggled to deliver profitability. Many did not succeed, as indicated by the result of the IHFA (Index of Hedge Funds Anbima), which follows the category. On average, actively managed multimarket funds had accumulated gains of only 1.85% in 2021.
Exceptions to the ruleAmong the financial investments listed by InfoMoney, the ones that managed to overcome inflation were Bitcoin and BDRs.
After gaining strength among retail investors in 2020 with the thesis of an asset uncorrelated to the traditional economy, Bitcoin has fallen in favor with institutional. In 2021, the world’s largest cryptocurrency reached an all-time high of US$69,000 in November.
Some analysts believed it could reach US$100,000 this year – but when it comes to cryptocurrencies, volatility is the name of the game. Since the record price, the mood of the market has turned and has taken Bitcoin below $50K. Even so, the accumulated gain in 2021 was around 60%.
The BDRs yielded, on average, 33.65% in the year, as shown in BDRX, index that accompanies the papers. The good performance of foreign stocks is also reflected in the performance of American stock indices, which have broken record after record in recent months.
With extensive economic stimulus programs, the United States managed to recover much of the losses caused by the pandemic – the unemployment rate in the country fell to just over 4%, while GDP is expected to end the year with an advance of 5.6%, according to the Conference Board. The same was seen in other markets.
Where to Invest 2022: experts explain what to do with your money in an election year in a free ebook!
Note: This article has been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
The BDRs yielded, on average, 33.65% in the year, as shown in BDRX, index that accompanies the papers. The good performance of foreign stocks is also reflected in the performance of American stock indices, which have broken record after record in recent months.
With extensive economic stimulus programs, the United States managed to recover much of the losses caused by the pandemic – the unemployment rate in the country fell to just over 4%, while GDP is expected to end the year with an advance of 5.6%, according to the Conference Board. The same was seen in other markets.
Where to Invest 2022: experts explain what to do with your money in an election year in a free ebook!
Note: This article has been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
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