Investors Jolted by Lula Win Seek Bottom After Brazil Rout

Investors caught off guard by President Luiz Inácio Lula da Silva's re-election are hesitating to re-enter Brazil's markets after bullish bets unraveled spectacularly. The rout wiped out gains and left traders wary of buying the dip. Some funds are scaling back exposure, while others see potential value in beaten-down assets, but uncertainty over Lula's economic policies persists.