Hedge Funds See Cheap Brazil Assets Hindered by Tossup Election
- Investors take stock of presidential race after first round
- Brazilian stocks could rally 14% after election, Vinland says
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Some of Brazil’s biggest investors are cautious about the near-term outlook for markets, saying it’s better to wait for more clarity about the next government before adding to positions.
They say the lack of a clear economic plan from presidential front-runner Luiz Inacio Lula da Silva may put a damper on Brazilian assets in the short term. While most polls favor Lula to win the second-round vote against the incumbent Jair Bolsonaro, many in the investment community see the race’s outcome as a tossup at this point.