As global breadth continues to expand, capital keeps moving further out on the risk curve.
New areas are asserting leadership as market rotation runs its course, with one country after another joining in on the international bull market.
While value and cyclicals are what have most investors' attention, the highest-risk, highest-beta corners of the market are also sharing in on the upside.
Today, we're talking about Brazilian speculative growth stocks.
Like most countries, Brazil's economy is resource-intensive, and its equity market reflects that. Materials, energy, and financials do the heavy lifting.
But beneath the surface, there is a growing ecosystem of small-cap fintechs and speculative technology companies… and they're being overlooked.
They are not large index weights. They are not what moves the headline averages. But with risk appetite building, the stage is set for them to be the leaders of the future.
Below is an equally weighted index of our favorite Brazilian speculative technology stocks. Notice the textbook trend reversal.
