Premium"Many Macro Fund Casualties": Brazil Carnage Spreads To Day Three As Lula Shock Sparks Worse-Than-Lehman Crash
We said there would be carnage: on Sunday night, just as the Brazilian electoral court was counting the final votes that would hand socialist Luiz Inácio Lula da Silva a fourth term in a shocking 51.8% to 48.2% upset over Flávio Bolsonaro which nobody expected amid allegations of pervasive vote rigging, we did not need a Goldman note to tell us what Monday would look like:
Three sessions later, the casualty list is still growing. The Ibovespa crashed 13.9% on Monday in its worst day since 2020, slipped again on Tuesday and then fell another 2.7% on Wednesday to 171,006, a two-month low, according to the Rio Times. That puts the index roughly 17% below Friday's close of 205,083, and that's before converting to dollars: priced in USD, Monday alone wiped out 21% of the Ibovespa, the worst day since the 1994 Real Plan.