XP Inc., Brazil’s largest brokerage, cautions investors to avoid blanket index purchases amid expectations of a cooling economy and an upcoming polarized presidential election.

The firm stresses that sector‑specific research will become more critical as growth slows, warning that broad‑market bets may overlook uneven performance across industries.

With voters split on key economic policies, market volatility could rise, tightening liquidity for high‑growth sectors. Investors who tailor portfolios to resilient sectors may better navigate the anticipated slowdown.

The advisory signals a shift toward selective investing, suggesting that even dominant players see value in disciplined stock picking during uncertain political and economic periods.