Ibovespa drops more than 10% after reaching a record
The Ibovespa underwent a correction after reaching recent record levels. In less than a month, the main Brazilian stock market index reached 199 thousand points, but fell by around 10% and returned to the 180 thousand points range.
The fall was influenced by a combination of external and domestic factors, in a scenario in which international stock markets, such as the American one, continue to renew highs.
According to Marilia Fontes, presenter of Resenha do Dinheiro and specialist in fixed income, this reflects a set of pressures coming from the global scenario and also from the flow of investors.
"It was a mix of more negative news abroad, new waves of rising oil prices and also political uncertainty in Brazil. In addition, there was an exit of foreign investors after a strong period of entry, which helped to put pressure on the stock market", he says.
For Bernardo Pascowitch, the electoral environment also tends to increase stock market volatility throughout 2026.
"Election year is a year of greater volatility than normal. Each new survey or news can change the mood of the market and investors, which impacts the stock market and exchange rate", he explains.
Thiago Godoy assesses that downward movements are not always linked to structural crises, but often the realization of profits after consecutive increases.
"The investor enters, the asset rises a lot and, upon seeing accumulated gains, ends up selling to make the profit", he states.
In the short term, according to Bernardo, market behavior can be influenced by specific triggers, both for purchases and sales, especially in moments of historic highs.
"Sometimes it's a small trigger that leads investors to take profits or even buy again. At times of highs, any new information can accelerate sales movements or resumption of purchases", says Pascowitch.
In addition, the political environment remains on the market's radar. Proposals to control public spending tend to be more receptive among investors.
On the other hand, the worsening of the fiscal scenario remains one of the main points of attention, with the risk of pressure on inflation, interest rates and the stock market.
Amid volatility, focusing on the long term is essential.
"For the long-term investor, the most important thing is to follow the planning, maintain the strategy and not react to every short-term fluctuation", he adds.
Dinheiro Review
Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the "Financial Daddy", Marilia Fontes, founding partner of Nord Investimentos; Bernardo Pascowitch, founder and CEO of Yubb, proposes a light, direct and uncomplicated approach to topics related to financial education and investments. The attraction addresses the main themes of the economy weekly with the informality of a conversation between friends - without compromising on analysis.
The Money Review airs every Friday, at 7pm, on the CNN Money YouTube channel and on Sundays, at 3pm, on CNN Brasil.
Source: CNN