Brazil selloff extends dismal run for Latin American markets - Semafor

The recent collapse of Brazil’s stock market following leftist President Luiz Inácio Lula da Silva’s reelection has extended a dismal run for Latin American equities, and analysts held out little hope for an imminent rebound.

The region once drew major investment inflows as investors chased returns during commodity booms. But years of underperformance and sluggish growth have led to capital flight: The number of Latin America-focused stock funds has fallen to just 226, around a third of the 2015 peak.

IPOs in the region have likewise ground to a halt despite a venture capital recovery in 2025. “We are, unfortunately, in the worst [cycle] that we have ever seen,” a market veteran at UBS BB told Bloomberg. “And it’s taken a toll.”