Double Down on Brazilian Equities | Research

Tactical, cyclical, and structural indicators are aligned to double down on our long Brazilian equity position.
We started to rotate away from Brazilian bonds towards equities in March, which was too early. Today, tactical entry points are more attractive following the recent VP Breadth Squeeze buy signal on EWZ.
Brazil's economy is in a cyclical sweet spot, as growth leading indicators have bottomed and inflation remains under control.
The structural growth story across the agriculture and energy sectors is intact and Brazil is aligned with the long-term capital cycle. The majority of Brazilian industries, including oil & gas, metals & mining, and consumer services, remain capital scarce and uncrowded.