Brazil equities: Strong inflows extend 2025 trend – Societe Generale

Societe Generale’s Dev Ashish notes that Brazil remains a leading destination for equity portfolio flows in 2026, helped by attractive valuations after the 2022–24 compression. Expectations of BCB easing, resilient earnings, supportive EM sentiment and institutional stability are sustaining interest, though election‑related fiscal and policy risks could determine whether this positive momentum in Brazilian equities persists.

Brazilian equity flows stay resilient

"Brazil’s strong equity inflows have continued into 2026, extending the momentum from last year as investors remain attracted to valuations that still look appealing following the deep 2022–24 compression."

"Expectations of BCB easing, resilient earnings, supportive EM sentiment, and institutional stability are sustaining flows."

"However, election‑related fiscal and policy risks remain central to determining whether momentum can persist through 2026."

"Brazil remains among the strongest destinations for equity portfolio flows in 2026, attracting USD 5.9bn year‑to‑date, already surpassing the USD 4.6bn recorded in 2025 and significantly outpacing most major emerging markets."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)