JPMorgan Forecasts 20% Ibovespa Drop, Dollar to R$5.50 Post-Election

JPMorgan projects a 20% decline in Brazil's Ibovespa and a weaker real (dollar to R$5.50) in the near term following the election. The forecast implies market stress and capital outflows, with domestic cyclical stocks hit hardest while exporters benefit from currency depreciation. The exact election outcome and policy direction remain uncertain, driving the bearish outlook.

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