Continued Confidence In Brazilian Equities

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Kagenmi/iStock via Getty Images We believe the Brazilian market faces a favorable environment in 2024 due to factors such as continued rate cuts, GDP growth, and attractive valuations. In 2023, Brazilian equities experienced significant growth, with the Bovespa Index rising by 22.3% for the year, approaching its all-time high. This performance is notable given the initial challenges faced at the start of the year, including a new political cycle, a weak economic outlook, and fiscal risks. However, these concerns did not materialize to the extent anticipated by the market. This perspective was supported by the EME equity team's findings during...