📉 Brazil’s economy faces challenges due to political issues and a large fiscal deficit.
😬 The analyst expresses concerns about the current political climate and its impact on the market.
⚠️ Brazil’s market is seen more as a technical rebound than a long-term investment opportunity.
❌ The analyst advises against long-term investment in Brazil at this time.
@marcosemmimfp:
“I have some mixed feelings about Brazil because, on one hand, the exchange rate has fortunately stabilized around 5.70-5.80, below the 6, which caused a lot of fear in the market due to a run against the Real. Today, it’s calmer. The interest rate, the expected rate, had gone to almost 16, but now it’s at 14.70, which is what we expected. The Selic is fine, so we could see some movement to take it to 14, preventing the market from falling. However, the market has already had a very good rise. Brazil’s deficit is even larger than during the pandemic, around 11%, which is crazy. I don’t enter Brazil for the long term yet. We had a beautiful trade where we earned quite a bit, but I don’t think the same about Brazil as I do about China. Brazil can continue to rise a bit, but I see it more as a technical rebound because it’s still in a downward trend, as the Brazilian economy is doing poorly, and the market doesn’t like the politicians in that country.”
Watch the exact part of the video where Nahuel Gandulfo talks about Brazil here:
Watch the video on YouTube.
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