Investors See Bumpy Path to Brazil Rebound as Election Nears
- BlackRock, Fidelity remain on sidelines as growth slows down
- Stock strategists call for 20% gain as risks partly priced in
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After a year to forget, strategists say Brazilian stocks have room to bounce back -- just don’t expect it to be smooth sailing.
Latin America’s largest economy has been home to one of the world’s worst-performing equity markets this year, with the benchmark Ibovespa index heading to its first yearly drop since 2015. With valuations now hovering at the lowest levels in more than a decade, analysts surveyed by Bloomberg forecast an average gain of 20% for the market next year, even as rising interest rates, sluggish growth and a divisive election fuel volatility.