The S&P 500 has reached all-time highs, driven primarily by the energy sector, which is up 47%, and technology, up 39%, while other sectors lag behind. As investors consider portfolio rebalancing, the focus is on whether energy will maintain its lead amid easing inflation and geopolitical tensions.
The recent Brazilian presidential election saw Senator Flávio Bolsonaro unexpectedly secure 47% of the vote, causing the Ibovespa to surge 7.7% and the iShares MSCI Brazil ETF (EWZ) to rise 12.6%. This political shift has led to a reevaluation of Brazil's market risks, drawing comparisons to Argentina's recent market performance.
Todd Gordon, founder of Inside Edge Capital, suggests investing in Petrobras (PBR), Brazil's state-controlled oil company, which benefits from its low-cost crude production and strong refining margins.
With PBR's stock recently breaking through resistance levels and yielding about 5%, Gordon plans to allocate 2% of his portfolio to it, viewing it as a strategic play on both oil and refining sectors amid favorable market conditions