Fund Managers Adjust Strategies Amidst Record Pessimism on Brazil Economy
A survey by XP revealed record pessimism among fund managers on Brazil's economy, leading to adjustments in currency positions and new projections for PIB growth. While caution in the foreign exchange market is evident, there remains optimism about Brazilian stocks.
A recent survey conducted by XP among multimarket macro fund managers revealed unprecedented pessimism regarding the Brazilian economy. With 55% of professionals holding a negative outlook, this marks the highest historical level and reflects a broadly unfavorable perception of current economic conditions. In response, investment strategies have been adjusted, with a significant shift towards neutral positions in the currency market. The share of funds neutral on the real rose to 60%, while sell positions dropped substantially, indicating a cautious stance rather than direct bets against the dollar. However, the stock market remained stable, with 70% of funds maintaining buy positions. The projected PIB growth for 2026 was revised downward to 1.8%, below the median forecast captured by the Focus bulletin. This shift in strategies underscores a cautious approach, but confidence in equity assets still persists.
Source: InfoMoney