5 investments that benefit from the rise in the Selic rate; see where to invest – Money Times

Selic rate
Selic rate rises by half a percentage point, reaching 13.25% per year (Image: Agência Brasil)

O Central Bank (BC) announced a further increase in the Selic ratethis time by half a percentage point, reaching 13.25% per year.

Even with a slight deceleration in May, concern about inflation remains, as well as the war in Eastern Europe and the return of restrictive measures in China due to the pandemic, are factors that make the market review its projections until the end of 2023.

In the investment world, whoever gains from this scenario is the fixed income.

Fixed income earns more than 1% per month

THE Selic is the rate that the BC uses to remunerate the investor in its main investment security: the Selic Treasure. Also known as LFT (formerly Treasury Bill)is one of the options for investors looking for a reserve of liquidity, in addition to being the most secure investment in the country.

Other investments that are also favored by bank interest rates are those linked to the Interbank Deposit Certificate (CDI)for example, as the rate practiced by private banks is very close to the Selic rate.

In addition to Treasury Direct, the specialist in iHUB InvestimentosLucas Sharau, cites five more investment options that, linked to the CDI, are yielding more after the recent rise in the Selic:

How is the stock market in this scenario?

In less than five months, the Brazilian stock market has already surpassed 120 thousand points and is now approaching 100 thousand points. “Volatility is a constant at the moment,” explains Sharau of iHUB.

“The Brazilian stock market is mostly composed of commodities, but it also has other segments in its composition, each one at its own time, we still have positive growth prospects for investments longer than six months to a year”, he says.

In the commodities segment itself, according to the specialist, there are remnants of the impacts of the pandemic, and the prices of some companies may still be discounted in relation to the prices considered “fair” by their shares.

Furthermore, Sharau explains that the election in Brazileven though it is priced by the market, it can still impact the stock market and the national economy, especially with the global recession scenario gaining strength in recent weeks.

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O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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