The S&P 500 has survived numerous crises over 100 years—high unemployment, wars, 9/11, COVID—because US institutions are strong and the market fosters constant innovation (creative destruction). This resilience makes it a reliable long-term compounding vehicle.
US Treasury bonds are the true global risk-free asset. Over the past decade they returned more than 20% in reais, while Brazilian bonds (Selic) returned only 4% in dollars. Credit rating agencies rate Brazil's sovereign debt as riskier than Botswana's, Paraguay's, or Romania's. For capital preservation, Treasuries are a safer alternative.
Brazil represents only 1% of the global market. Investing through the US allows access to thousands of international companies and diversification across countries and currencies. Recency and home bias lead Brazilians to concentrate risk in a single volatile market; global diversification is a lifeboat.