Goldman Sachs: Policy clarity will bring more upside room to the Brazilian market.

Goldman Sachs strategists wrote in a report dated October 15 that the rally in Brazilian markets after the first round of the presidential election may still have room for further upside, depending on whether favorable fiscal policies can be implemented after the second round of voting ends on October 25. Strategists led by Sunil Koul noted that positioning in some sectors is relatively light, foreign capital inflows still have room to accelerate, and valuations are broadly in line with their fair value.