Brazil is a 'clear buy', says BlackRock. "There is a lot of pessimism priced in"
The Brazilian economy doesn't need to improve that much for the local stock exchange to yield returns. With this conviction, and that there will be some control of public spending in 2027, which would allow cuts to the Selic, Samuel Vecht, a portfolio manager at BlackRock, believes that the Brazilian stock exchange is a "clear buy". "Foreigners and Brazilians have lost [confidence], but there is a great opportunity for improvement," he said.
Samuel Vecht, a portfolio manager at BlackRock, believes that the Brazilian stock market is a "clear buy" due to its potential for growth despite not requiring significant economic improvement. He thinks that even a small change in interest rates could have a substantial impact on the market. Vecht also sees value in China, which he believes has lost too much ground in regional stock indexes.
He notes that emerging markets, including Brazil and China, are undervalued and have potential for long-term growth, with Brazilian stocks being particularly attractive due to their low valuation and potential for interest rate cuts in 2027.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
