This paper presents favorable piece of evidence of the relationship between the Brazilian real output and its stockmarket. Neglecting this fact may jeopardize current price stability and economic growth.

This paper is about one of the most argued subjects in the financial theory: the forecast of future returns. We work with the model of multifactor of Fama and French, and the regression presented for Grinblatt and Moskowitz (2002), that work with the size of the company and the book-to-value. We...