Plenty has been written about the outcome of Brazil’s general elections in late 2018 and the potential consequences. However, financial markets seem to agree that it’s time for the once-promising BRIC economy, shunned by investors for most of last year, to re-emerge and maybe even to improve.

Brazil Indices Development

Source: MV Index Solutions.

Several indicators, such as the recent strength of Brazil’s currency and the declining risk premium on government bonds corroborate this interpretation, suggesting further upside potential, provided that the government delivers on its economic and legislative agenda.

About the Author:

Christian Kastner is a financial writer and analyst. He covers the world of investing since the beginning of the decade and teamed up with some well known figures of Germany's financial universe along the way.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.