Strategy Note /
Brazil

Brazil: Bolsonaro buys votes and alienates investors

  • Another social welfare plan (Auxilio Brasil) pressures c7% fiscal deficit and c90% debt forecasts over 2021-22

  • While this spooked investors it has helped Bolsonaro close some of the wide opinion poll gap with left-of-centre Lula

  • Brazil equities are cheap: counter-intuitively, high prior Covid infection and a Lula win may help the investment case

Brazil: Bolsonaro buys votes and alienates investors
Hasnain Malik
Hasnain Malik

Strategy & Head of Equity Research

Tellimer Research
1 November 2021
Published by