Fidelity, Hedge Funds Buy Brazil Stocks as Outlook Brightens
- Policymakers signal ebbing inflation may lead to rate cuts
- Legacy Capital dismantled bearish bet against Brazil equities
A man walks in front of the stock market building in Sao Paulo, Brazil, on October 03, 2022.
Photographer: ERNESTO BENAVIDES/AFPThis article is for subscribers only.
Investors are buying the dip in Brazil’s stock market as the nation’s hyper-aggressive central bank warms to the idea of easing painfully high interest rates.
Fidelity Investments and a smattering of local hedge funds are adding exposure to shares from Latin America’s largest economy, convinced that lower borrowing costs will accelerate corporate growth — just as President Luiz Inacio Lula da Silva’s new fiscal framework edges closer to reality.