Bullish Opportunities in Brazil

The opportunity in global equities is becoming clearer by the day.

After a long period of underperformance and being overlooked, markets outside the U.S. are starting to look attractive again — even if many investors remain skeptical.

This shift is showing up in the flow of capital.

Lately, money has been rotating into Emerging Markets — some of the riskiest regions in the world.

Within that landscape, Latin America is gaining attention, and Brazil in particular is emerging as a standout opportunity,

Brazil’s equity market mirrors its resource-driven economy, with Materials, Energy, and Financials leading the charge.

Beneath the surface, a growing group of fintech and speculative tech names is quietly gaining traction,

It’s a surprisingly diversified opportunity set.

The MSCI Brazil ETF $EWZ is now breaking out above a 15+ year downtrend line.

While I’m not usually a trendline guy, this breakout looks decisive.

With broader participation improving, the setup is starting to look meaningful.

On a relative basis, Brazil also looks constructive, as we see mounting evidence that the country could be turning the corner.

EWZ has reclaimed a major support zone relative to international stocks — the same area that marked the 2016 and 2022 lows.

I can’t think of a better place for Brazilian equities to assume a leadership role.

We just released a deep dive on Brazil, outlining four new trade ideas across different equity vehicles. You can read the full report here.

Alfonso De Pablos, CMT

Director of Research, All Star Charts

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