Over the years, Wall Street has fallen in and out of love with Brazil a few times. It appears that “romance” is back in the air, as we see in this post from Mamela Fiallo:
Brazil started the month of February as the global emerging markets leader, and has quickly established itself as a Wall Street favorite this year.
According to experts, the election of Jair Bolsonaro offers great prospects for the largest economy in Latin America.
68% of the investors surveyed by Santander expect that Brazil will be the country with the highest yield for Latin American shares.
I’m not a Wall Street expert, but I understand why the “Street” likes him.
First, he comes from Brazil’s new right. More specifically, he comes from the corner in Brazil where people reject the crony capitalism and corruption that Lula’s policies created. I’m amazed at the number of times that Brazilians mention “corruption” when they talk about their nation’s politics.
Second, he won a big majority or 55% of the popular vote. He obviously has a mandate and it is not pushing the country back to Lula’s ideas.
Third, President Bolsonaro is using words like “privatization” and “smaller government”. Furthermore, it looks like he means it.
As always, time will tell. However, I’m going to bet on President Bolsonaro because a lot of Brazilians are doing the same thing.