Business

Brazilian analysts vaccinate stock portfolios against coronavirus

With Brazilian markets dipping severely in February, analysts of major brokerage firms are reshuffling their portfolios to guard against losses during periods of uncertainty

Brazilian analysts vaccinate stock portfolios against coronavirus
Image: DOERS/Shutterstock

In February, alarmed by the outbreak of the novel coronavirus and its potential effects on the economy, Brazil’s benchmark stocks index Ibovespa registered its worst monthly dip since 2018. For this month, analysts from some of Brazil’s main brokerage firms increased the defenses of their recommended stock portfolios. But despite the turbulence and uncertainty provoked by Covid-19, there is some residual optimism among some brokerages.

The unanimous opinion of analysts in Brazil is that the coronavirus outbreak is a source of volatility that is likely to rein in the country’s hopes for GDP growth. However, there is no consensus on...

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