JP Morgan resumes recommendation for Brazilian stocks.

247 - Almost four months after adopting a contrary stance, the American bank JP Morgan has resumed recommending Brazilian stocks, signaling a tactical shift in the investment landscape. According to a report released by JP Morgan, new global and regional factors are favoring the country, reports the newspaper. The Globe.

At the end of November, while the crisis of distrust regarding fiscal policy intensified and a speculative attack was underway, the bank had downgraded its recommendation to "neutral." At that time, Mexico had been upgraded to "buy," but as the report explains: "our justification is that the factors that led us to upgrade Mexico are now behind us, and new factors now favor Brazil."

Among these factors, the prospect of an end to the interest rate hike cycle and the resumption of growth in China stands out, which could inject more capital into emerging markets – including Brazil. This situation, combined with positive indicators such as the recent appreciation of the real (from R$ 6,20 to R$ 5,70 against the dollar) and signs of easing inflationary pressure, has helped to renew investor confidence.

The team of analysts, led by Emy Shayo Cherman, emphasizes that the change "is tactical, not structural," since the fiscal imbalance still persists. However, the bank sees opportunities in strategic sectors, such as banking and utilities – especially energy and sanitation – which, trading at an average of seven times earnings per share, are considered "cheap" by experts.

Another positive point mentioned is the scenario in the United States. If the country avoids a recession, the expectation is that emerging markets, including Brazil, will continue to attract investors.