Brazil is one of the most populated countries in the world. The country has over 200 million people. This enormous population, backed with lots of natural resources, is quickly driving Brazil to one of the biggest economies in the world. Its fast growing middle-class population also creates a market for goods and services. This situation has seen many companies invest in the country. However, in the past, Brazil has faced numerous economic and political crises making it harder for investors to make sound decisions. It is for this reason that Igor Cornelsen went out of his way to provide investors with the key information that they need before investing in the country.
A drop in stock prices has accompanied the economic and political crises across many sectors in Brazil. According to experts, the prices are currently at the bottom of the cycle. Although most firms are suffering from the crises, Brazilian banks have already developed strategies that have helped them weather the turbulent economy. Igor attributes these strategies to the experience of these banks in regards to Brazil’s turbulent economy. He uses his experiences as the basis of how any investor should invest in the South American country. Below are the four fundamental basics:
Brazil has ten major banks. These banks are Banco Itau, Caixa Economica, HSBC, Banco Bradesco, Santander, Banco do Brasil, Banco J Safra, Banrisul, BTG Pactual and Citibank Brazil. These banks have continuously posted positive results. It is believed that they will continue making profits going forward.
New political changes might also turn the economy around. Since policies that were pushed by Guido Mantega were majorly ideological, the new political environment in the country may is poised to change. It is expected that Joaquim Levy will turn the economy around as the new finance minister. In the recent past, the country’s economy faced myriad of challenges. However, with the new regime, the economy is expected to grow and attract both local and foreign investors.
Igor also believes that investors should pay close attention to China’s economy since China is Brazil’s largest trading partner. When China’s economy is doing well, there is more demand for Brazilian products and vice versa. Other key countries to watch are the other Latin American countries.
Brazilian currency is substantially undervalued. This has made it hard for foreign businesses to operate in the country. However, the new regime is expected to have less intervention. This way, the growing economy will spark investments and increase Brazil’s competitiveness.
Igor Cornelsen is an investment expert in Brazil. He works with the Bainbridge Inv. Inc. His major role at the firm is to advise foreign investors and business persons that are interested in investing in Brazil. Over the years, Igor’s pieces of advice have enabled many business and investors to make sound investment decisions and operate smoothly in Brazil.
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