Key Market Views: Bullish Brazilian Real

Brazilian assets across the board continue to look highly attractive, as US dollar weakness remains the dominant theme in financial markets, and the strong fundamentals of the Brazilian economy underpin investor confidence. To be sure, our 'bullish Brazilian stocks' view has played out nicely, posting a strong weekly close above our 64,000 target on October 9. Up 14.4% on our position initiated on August 4, we choose to remain bullish the Bovespa in our key market views portfolio for the time being. We will be watching the Dow for a potential close above the 10,000 level, which would signal further upside for Brazilian stocks. On the downside, we may revisit our stance on the Bovespa in the case of a move lower towards the 63,700 area, which should now act as support in the near term.

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