# Brazil: Is the 50% drop in the stock market an opportunity?

> Brazil's equity market has fallen more than 50% in US dollar terms year to date, compared with a drop of under 20% for broader emerging markets. The decline reflects existing fiscal and macroeconomic vulnerabilities worsened by Covid-19 and a lack of coordinated domestic response. The article argues the sell-off may present an investment opportunity.

- Date: 2020-05-21 · published 2020-05-21T12:00:00.000Z
- Category: market · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/7443-brazil-is-the-50-drop-in-the-stock-market-an-opportunity
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

The equity sell-off mainly reflects investor risk aversion and currency weakness rather than a direct change in feed supply or demand, so its direct effect on feed commodity prices is limited.

## Sources

- schroders.com: https://www.schroders.com/en-us/us/local/insights/brazil-is-the-50-drop-in-the-stock-market-an-opportunity/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.