Where to invest in March 2021 keeping an eye on the market

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One year into the pandemic, there are 4 factors of great importance to worry about in March: 1. Commodities supercycle. The commodities rally continues to gain momentum. Meanwhile, the Chinese are not standing still: in the year of the 100th anniversary of the Chinese communist party, and with Xi Jinping preparing to seek his re-election in 2022, China is at a time to invest heavily in infrastructure and increase the state's presence in economy. 2. Higher inflation. In Brazil, the acceleration of Covid-19, the disorderly discussion of the extension of fiscal stimuli and the political issues that shook Petrobras this month increased risk premiums, causing the dollar to rise even further. In this environment, the Central Bank of Brazil began to signal the beginning of monetary tightening in the first half of the year. After the last Copom meeting (Jan 20), we revised the projection for the start of the interest rate hike cycle from August to May. We hope to close the year with Selic at 3.5%.

Tax issue. Despite marginally better results in 2020, short-term (pandemic) and medium-term fiscal risks (managing a debt that approaches 90% of GDP) remain the main source of concern for the Brazilian economy. 4. Reflation Trade. The advance of vaccination around the world and strong Brother cell phone list government stimuli kept the “reflation trade” (search for assets that benefit from the stimulus scenario and, consequently, higher inflation) alive in the markets. However, if the stimuli – past and future – prove too strong, it is possible that a hangover will come later. Read here for all the details on what to pay attention to in the markets in March. How to set up a portfolio in this scenario? Those who “survived” 2020 in the market may have started this year thinking that the investment scenario in 2021 is calm — a matter of perspective. But the truth is that this type of thinking is precisely what leads people to make wrong decisions, harming the construction of wealth.



Every month, we put together our recommendations with appreciation in mind, but also balance and protection (in fact, if you want to jump straight to the percentages recommended in March, they are at the end of this text). This is precisely why one of the most important activities for investors is rebalancing values! In March, we reduced exposure to foreign exchanges and inflation bonds, reaching the recommended allocation below. To read more, visit our March 2021 allocation thesis . And also access details of recommended assets for conservative , moderate and aggressive profiles . New managers and the ESG vision We already know that you cannot ignore the ESG issue in investments. This month, Rico's platform debuts a new feature that helps you adapt your investments to an urgent issue: renewable energy.