The Missing Piece in Latin America’s Bull Case

Brazil represents the critical missing piece in the "LatAm Spring," a regional transition from consumption-led growth toward an investment-driven economic cycle. This shift is underpinned by three primary catalysts: the potential for credible fiscal reform to lower the country's historically high cost of capital, a strategic alignment with the global AI CapEx cycle, and evolving geopolitical ties. As global AI infrastructure spending is projected to reach $5-6 trillion, Latin America’s vast resources—including 30% of global copper and 60% of lithium—position the region as a vital hardware and energy provider. While Mexico and Chile have already begun integrating into these supply chains, Brazil’s participation depends on achieving policy credibility and deregulation. Ultimately, Brazil’s ability to pivot toward capital formation and entrepreneurship will determine the success of this broader regional economic transformation.