Interest rates rise after the polls and prices fall; public accounts weigh again

The favorable climate that preceded the election was short-lived in the Brazilian market. According to Seu Dinheiro, future interest rates were falling, Brazilian assets were appreciating and real estate funds (FIIs) were recovering ground. After the poll results, however, interest rates rose and prices fell.

The reason given by the publication is known to those who follow the government's accounts: concern about public accounts has once again weighed on the market. For the investor, the central point is not only the result of the vote, but what it signals about the country's fiscal balance.

It is in this scenario that the Seu Dinheiro report poses the question that moves many investors: what to do with real estate funds after the polls. The publication treats the topic as a positioning decision for those who already have or are thinking about having FIIs.

The sequence of events, from falling interest rates to rising interest rates, shows how asset prices react quickly to changes in expectations. The data collected in this matter does not provide percentages for these variations, which makes it necessary to look at the complete series of quotes and rates before concluding about the magnitude of the movement.

What changes for the investor

In practice, the interest rate is once again a factor of attention for those who invest in FIIs. When interest rates rise, fixed income tends to become more attractive in comparison, which can put pressure on real estate fund prices. At the same time, the discussion about public accounts begins to weigh more heavily on price formation, and it is worth monitoring how interest rates and the fiscal scenario evolve in the coming weeks. This text does not predict price behavior or indicate the purchase or sale of any asset.

Automatically translated from Portuguese.