Business & Finance
Funds Warn Brazil $126 Billion Stock Market Rout Isn’t Over Yet
Key Points
Funds Warn Brazil $126 Billion Stock Market Rout Isn’t Over Yet The rout in Brazilian assets sparked by Luiz Inácio Lula da Silva’s re-election shows little sign of abating, with some of the nation’s biggest money managers saying a downturn that has already wiped out months of gains could get even worse. Firms from Bradesco Asset Management to BB Asset aren’t ready to jump back into a stock market that has erased more than 700 billion reais ($126 billion) in market value since Lula won a...
Funds Warn Brazil $126 Billion Stock Market Rout Isn’t Over Yet
The rout in Brazilian assets sparked by Luiz Inácio Lula da Silva’s re-election shows little sign of abating, with some of the nation’s biggest money managers saying a downturn that has already wiped out months of gains could get even worse.
Firms from Bradesco Asset Management to BB Asset aren’t ready to jump back into a stock market that has erased more than 700 billion reais ($126 billion) in market value since Lula won a fourth term in office late last month. They’re also keeping their distance from the real, which has tumbled more than 10% in that time as investors — many hoping that Flávio Bolsonaro would win — lost hope that interest rates would soon fall in response to fiscal reform.