Institutional analysts: Investors should consider buying the dip in the Brazilian market
Odaily News: Gavekal Research analyst Rohan Daswani stated that after Lula unexpectedly defeated Bolsonaro, the Brazilian market may face heavy selling at the open, but investors should view this as a buying opportunity.
He pointed out that the market had already priced in Bolsonaro's victory and expectations of strengthened fiscal discipline in advance. However, as related trades are unwound, the structural bullish case for Brazil remains intact, including abnormally high nominal and real interest rates, significant commodity exposure, and Brazil's increasingly important position in critical mineral supply chains.
Additionally, Brazil's Congress is clearly more conservative than the president, which limits the room for a major shift in economic policy toward the left. (The Brazilian stock market opens at 21:00 Beijing time)
