Brazil is good for international stock markets

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It is almost certain that there have been many investors who thought that this black October could end worse in the financial markets. As a result of the results that have occurred in Brazil and that has determined that the radical candidate Jair bolsonaro be the new president of this emerging country since last Sunday. These elections were creating some uncertainty in the prospects for small and medium investors. Fundamentally in Spain due to the great relationship of a good part of companies that are listed on the equity markets of this South American country.

Well, contrary to predictions, the Brazilian elections have given an unforeseen boost to international stock markets. Where the main stock indexes have received with moderate increases the triumph of the right-wing leader. Percentages that have been higher in the Brazilian Bovespa that have caused a appreciation close to 3% dado que esta elección fue muy bien recibida por los votos de los ciudadanos. La presión de compra ha sido el primer efecto de este event, que tuvo en vilo a gran parte de los pequeños y medianos inversores.

The Bovespa It is the main equity index in Brazil and constitutes one of the benchmarks for Latino users. In this regard, this Tuesday it has corrected positions after developing a bullish rally that has stood out for its special verticality. The Bovespa lost almost a 3% to get very close to the levels it has at 84,000 points in previous operations that led to climbing positions to 88,000 points, a level not seen in recent years and with a very high trading volume and in any case , above the average that has developed throughout the month of October.

Elections in Brazil: Stock Market on the Rise

Decidedly, the predictions of some financial analysts that a presidential victory by the representative of the extreme right in Brazil could lead to significant falls in the stock market were not fulfilled. This has not happened, but quite the opposite and to the point that the Brazilian stock market has therefore been one of the more profitable during this month of October that is about to end. Above the levels of the stock markets of the old continent that in general have shown very marked losses.

On this aspect, it should be noted that the equities of this country fulfilled one of the maxims of investors and is to market with the news after having bought with the expectations of Sunday's results. All this and waiting for what the new government will be like in this important geographical area of the planet. Conditioned, on the other hand, with the sharp declines that have occurred in Financial world And that has conditioned the evolution of Brazilian equities.

Relevance of the Rio de Janeiro Stock Exchange

La Bolsa de Valores de São Paulo o Bovespa es la séptima bolsa de valores más grande e importante del mundo, y la primera en ocupar esta posición en América. Su relevance se explica por el hecho de que el índice refleja el comportamiento de los principales valores negociados en el Sao Paolo Stock Exchange. This index is characterized by not having undergone any methodological modification since its launch in 1968.

It had been on a very clear downward trend for many months as a result of serious divergences in the Brazilian economy. To the point that it has one of the most depreciated in recent years. If you have invested money in this international market, you will conclude that you have lost more money than expected since the start of operations in this especially important market. Where the problems of corruption, political uncertainty and devaluation of your local currency, the Brazilian real, have been some of its main common denominators during this time period.

Effects on Spanish companies

One of the great beneficiaries of this electoral triumph of the politician Jair Bolsonaro have been some of the companies that are listed in the selective index of Spanish equities, the Ibex 35. With Santander, BBVA, Iberdrola or Telefónica At the head of the appreciations of these days prior to the elections where the financial markets ruled out a clear victory for the conservative representative. The reason is due to the economic plan that he wants to implement in Brazil to boost the economy and that is based on a privatization plan that investors undoubtedly like a lot.

In this general environment, it is not surprising that some national stocks have benefited the most from this buying pressure in financial markets. In this regard, it should be noted that from the opening until after the middle of the session, the Spanish companies with the greatest interests in Brazil have had a magnificent level in evaluation of their prices. To the point that it has caused significant gains in the stock market after learning of Bolsonaro's victory in the Ibero-American country. Above the results that companies without a presence in this American country have offered.

The Ibex 35 rises before the results

The effect that this political fact has caused has not been long in reaching the national equity markets. Because in effect, Telefónica has experienced increases around 2%, and above the national average. On the contrary, other values of the selective index of the Spanish Stock Exchange, such as the case of Banco Santander, caused their increases at that precise moment to touch the estimated levels of 3%, in the same way as other listed companies such as Mapfre and Day and to a lesser extent Iberdrola. In what has been considered a good day for national equities after a horrible month in October.

On the other hand, there are many equity analysts who believe that Bolsonaro's coming to power is trading strongly on the stock market, given that it is a day without major macroeconomic references. This has helped other stock exchanges in the world to join this peculiar buying current by small and medium investors. It is not surprising that the Brazilian stock market becomes one of the great positive surprises from now on. Not surprisingly, it should be remembered that he has been one of the most punished in recent years.

Investment strategies

Either way, if your intention is to go to this international financial market, you should know that you have to do it with great caution because it is one of the most volatile of the world. Where the difference between its maximum and minimum prices in the same trading session is very wide and certainly more than in the squares of the old continent. In other words, you are in a position to earn a lot of money in operations, but for the same reason to leave it on the road in no time.

It should also be noted that positions can be opened in the Brazilian market through other financial instruments that have nothing to do directly with the sale of shares in the stock market. One of these investment proposals is materialized by the investment funds. They will be those of variable income and whose investment portfolio is based on this financial asset. Decidedly, you will not have any problem satisfying this special desire since the management companies cover this geographical area with different investment funds.

Other financial instruments

The funds are not the only products in which positions can be opened in Brazil. Also they ETF A partir de este destino, logran este target, aún cuando partiendo de una strategy significativamente distinto. No es sorprendente que los fondos cotizados en bolsa sean una combinación entre la compra y venta de acciones en el mercado de valores y los fondos de inversión tradicionales. Con la ventaja de que presentan comisiones más competitivas que el resto. Aún cuando están pensados ​​para estadías más breves. Aún cuando be cual sea el caso es otra de las opciones que tienes para invertir en este país.

Los derivados o warrats además admiten esta oportunidad, aún cuando desde posiciones mucho más agresivas en los modelos expuestos previamente en este post. Donde se pueden producir grandes plusvalías si se sabe operar con ellas, pero además dejar muchos euros por el camino si se cumplen las expectativas creadas al final. Sus riesgos son notablemente mayores y requieren un mayor conocimiento de los mercados financieros. Esta es una de los motivos más relevantes por las que no debes comprometerte con ellos si no deseas tener problemas de ahora en más. Sea cual sea el caso, no te faltarán las posibilidades de presentarse en los mercados financieros de uno de los países emergentes más poderosos del mundo. Más allá de otras consideraciones técnicas y tal vez inclusive fundamentales.