XP Investimentos raised its projection to Ibovespa, the main index of the Brazilian scholarship, to 150,000 points by the end of 2025. This upward review reflects a scenario of growing optimism in the Brazilian stock market.
Raphael Figueredo, XP’s actions strategist, explained the reasons behind this positive perspective. According to him, two main factors drive this projection: the increase in foreign capital flow and the expectations of falling the interest curve.
Foreign Capital Flow
The first factor highlighted by Figueredo is the significant entry of foreign capital in the Brazilian market. This movement is the result of reducing excessive exposure to US markets, with investors seeking opportunities in emerging markets, including Brazil.
EXPECTATIONS OF FALL IN THIS INTEREST
The second factor is the projection of reduction in the interest curve. Figueredo explains that, as foreign investor enters the Brazilian market, projections for the interest curve have decreased. This benefits future projections as lower interest rates favor the discount of future cash flows from companies.
Figueredo concludes by stressing that while there are reasons for long -term optimism, it is important for investors to maintain caution, be aware of short -term movements and consider a rebalancing of their portfolios, adjusting the positions between fixed income and variable income.
