Amongst the many rotation trades in play in 2026, Brazilian equities have thrived, according to a research note by the American bank.
The iShares MSCI Brazil ETF (EWZ) nearly 30% gain since September 2025 has shown bubble-like instability in its spot-up, vol-up behaviour, pushing its bubble risk indicator to ~0.8 (out of a max of 1) and reminiscent of recent gold/silver/Kospi dynamics, a research note published by Bank of America (BofA)’s global equity derivatives research team on 18 February shows. The research argues that investors are unlikely to safely participate in the upside amidst such instability. In addition