Brazilian stocks remain attractive despite domestic challenges and global risks.

Brazilian equities continue to look appealing compared to U.S. markets, especially if global risk appetite improves. However, Brazil's domestic environment has become less favorable due to rising interest-rate futures and a weaker easing-cycle outlook. Recent foreign investor outflows since April are more linked to global risk-off sentiment and U.S. rate pressures rather than fundamental problems in Brazil. The EWZ fund remains a selective buy, with potential gains tied to a weaker U.S. dollar, stable Brazilian real, renewed foreign investment, and a more stable long-term interest rate environment.