Investor Igor Cornelsen says that lots of people overlook Brazil as a place to invest their money in. Brazil offers the wise investor lots of opportunities. Here are some of the things you should keep in mind to invest successfully in Brazil.
First, though, Igor Cornelsen mentions why you should consider investing in Brazil. This is in addition to his WordPress entries about young investors getting involved for the first time. The country is a major exporter of foodstuffs. Food will be in high demand all over the world regardless of economic ups or downs. Another reason to consider investing in Brazil, is that the country has an abundance of natural resources. They include timber, arable land, fossil fuels and minerals. Many of these resources are only being developed and there is still great opportunity to invest in mining, logging or oil drilling.
If you want to invest successfully in Brazil, Cornelsen states that you need to pay attention to Brazil’s largest trade partner, China. He states that the two economies are linked closely together. Strong growth in China can stimulate exports of Brazilian raw materials. The advice here, is to pay attention to Brazil’s major trade partners. Relations between major trade partners will undoubtedly have an impact on Brazil’s economy and your chances of investing successfully.
Another thing to keep in mind is to know the real value of the Brazilian real. Right now says Igor Cornelsen, the value of the real, Brazil’s currency, is overvalued. Igor Cornelsen believes that with a new finance minister in place, Brazil’s currency will fall in value to reflect more accurately its real value on the market. As the real drops in value and becomes stabilized, you should see more and more opportunities appear for Brazilian exports and manufacturing. A lower real usually means more Brazilian exports and an increase in manufacturing investment.
Understanding the big players in Brazil’s financial system is also crucial. There are 10 major banks that play a major role in Brazil’s economy. Some are government owned and some are privately owned. You should keep an eye on the major Brazilian banks and see what they are doing. Their actions can impact your investments. For example a credit crunch may hamper business growth. An increase in credit availability may mean greater growth in business opportunity. Tripod has more details about Igor, and you can see his full list of business credentials on LinkedIn.