Institutional Analyst: Investors Should Consider Buying the Dip in Brazilian Markets
Odaily reports that Gavekal Research analyst Rohan Daswani stated that Brazilian markets may face heavy selling at the open after Lula unexpectedly defeated Bolsonaro, but investors should view this as a buying opportunity.
He noted that the market had already priced in a Bolsonaro victory and expectations of strengthened fiscal discipline. However, as related trades unwind, the structural bullish case for Brazil remains intact, including exceptionally high nominal and real interest rates, significant commodity exposure, and Brazil's increasingly important role in critical mineral supply chains.
Additionally, Brazil's Congress is notably more conservative than the president, which limits the scope for a significant leftward shift in economic policy. (Brazilian stock market opens at 21:00 Beijing time)
