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Otavio (Tavi) Costa, portfolio manager at Crescat Capital, writes that Brazil's commodity cycle was already paving the way for gains in Brazilian stocks prior to elections.
He adds that political developments have since accelerated the momentum. What was previously seen as a major obstacle may now serve as an enabler for further growth, suggesting potentially exciting times ahead for the Brazilian market.
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Costa previously noted that Brazil was entering a potentially extraordinary new era following significant stock market gains in past bull cycles. In another commentary, he described silver's price lag as a notable divergence amid copper's outperformance. These earlier views provide context for his latest remarks on Brazil's markets.