This Hasn't Happened Since 2018, And Could Redefine The Course Of The Brazilian Elections
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Multiplo Invest2.23K FollowersFollow5ShareSavePlay(10min)CommentsSummaryI maintain a Hold rating on EWZ and other ETFs tracking Brazilian indices, citing unattractive risk-return for long-term investors.Recent gains in EWZ are attributed to global factors like Fed rate cuts, not domestic macroeconomic improvements.Brazil’s political landscape shifted as Jair Bolsonaro supports his son for 2026, increasing uncertainty and market volatility.With valuations rising to 11x P/E and persistent macro risks, I see little evidence for sustained outperformance in Brazilian assets. BrasilNut1/iStock via Getty Images Investment Thesis I reiterate my hold recommendation on ETFs that track the main Brazilian indices. This article is the continuation of my initial coverage thesis published on March 27, 2024, and my last articleThis article was written byMultiplo Invest2.23K FollowersFollowMore than 5 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You