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Brazilian Equities Are On Fire

ADMIN || 28th January 2026

Brazilian equities are ripping higher, the real is trading at fresh 19-month highs against the dollar and foreign investors are scrambling for exposure as the South American nation emerges as one of the hot spots for yield and liquidity.

The Ibovespa is up roughly 9.5% over the past five sessions and 13% on the year, blowing past US equity performance and pushing the benchmark to successive record highs. This isn’t just a local story, it’s a global reallocation trade as Brazil looks like one of the cleanest expressions of EM beta plus carry.

From a flows perspective, the move looks well-backed rather than frothy. Foreigners have poured more than 12 billion reals into local equities so far this month, the strongest inflow since late 2023. With expectations firming that an easing cycle is approaching from the central bank, Brazil’s rally risks becoming self-reinforcing if it isn’t already.

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