Latin America Markets Cool, Brazil Up 23%
Some fund managers are cutting Latin America exposure, a Bloomberg report says, while Brazilian stocks are up about 23% since mid-August before the runoff. The post Latin America Markets Cool, Brazil Up 23% appeared first on The Rio Times .
Latin America markets are experiencing a cooling trend, with Brazil being the next market to rally according to recent reports. Brazilian stocks have surged by over 20% since mid-August, anticipating Flávio Bolsonaro's victory in the 2026 runoff against incumbent President Luiz Inácio Lula. The MSCI index of Latin American stocks has gained more than 70% since the start of 2025, but some fund managers are reducing their exposure.
The rally in Colombia and Chile has faded as campaign promises have yet to be translated into governance actions. Brazil now represents the most expected market, with notable investors like Martin Bercetche of Frontier Road and Matthew Graves of PPM America advising on reduced exposure. Analysts suggest that if the next leader works with Congress and enacts a leaner budget, Brazilian risk assets could return double digits over 12 months.
However, fiscal challenges could cap these gains. Polls indicate a close race between Flávio and Lula, with the Brazilian stocks close to a 23% gain, according to our own calculations.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
