Brazil Stocks Are on the Cusp of a Massive Rally If UBS Is Right
- Optimists abound as Bolsonaro looks poised to win presidency
- But the huge caveat is that he needs to deliver on reforms
Jair Bolsonaro
Photographer: Andre Coelho/BloombergThis article is for subscribers only.
The optimism sweeping Brazil’s stock market has reached nose-bleed levels.
Analysts are predicting massive gains over the next 12 months on the back of Jair Bolsonaro’s likely win in this weekend’s presidential runoff, saying that he could send stocks to unprecedented highs if he aggressively pursues measures to shore up government finances. The right-wing lawmaker and his economic adviser, Paulo Guedes, are seen as godsends by investors enamored of their promises to rein in budget deficits, remove restrictions on the massive agriculture industry and privatize some state-owned companies.