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Goldman Sachs Sees More Upside for Brazilian Markets on Policy Clarity

Goldman Sachs strategists led by Sunil Koul said Brazilian markets may have further room to rise after the first round of the presidential election, depending on whether favorable fiscal policy is implemented after the October 25 runoff vote. They noted positioning in some sectors remains relatively light, foreign inflows still have room to accelerate, and valuations are broadly in line with fair value.

Original source

AI take

The signal here is less about Brazil itself than about how macro funds are framing political risk: Goldman is treating the runoff as a catalyst whose payoff depends on fiscal follow-through, not on the vote alone. Light positioning and room for foreign inflows suggest the market has not fully priced that scenario, which cuts both ways if policy disappoints. Whether foreign flows actually accelerate after the runoff is the open question, and it will say more about EM risk appetite than about Brazil specifically.

Generated by AI for reference only.

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