Many investors brush off the idea of investing in Brazil. They are unfamiliar with the country and language on about.me. There are cultural barriers. They think is Brazil really worth it? Are there opportunities there for me?
Brazil abounds with opportunities says Igor Cornelsen. He is a former banker, stock market trader, investor and financial consultant who has attained wealth, fame and prestige through his financial and business dealing in Brazil. Igor is living proof that you can invest in Brazilian business and stock and have a handsome payoff. However, just like with any investment you must know the game to win at it. Here is some advice to take with you if you decide to put money into a Brazilian venture from the mouth of Igor Cornelsen himself.
The first thing you should realize about Brazil, is that it relies heavily on exports of raw materials and manufactured goods such as furniture. Pay attention to the prices of these goods on the global market to gauge whether such industries will expand and increase profits or see cuts and dwindling profits instead.
You should also pay attention to the major trade partners of Brazil. When the economies of major importers of Brazilian raw materials and foodstuffs do well then this stimulates the entire Brazilian economy especially the agricultural, mining, logging and oil industry on PRNewsWire.com. Beware that when Brazil’s major trade partners suffer a set back, this could be felt in Brazil and lead to a decline in the economy of Brazil.
China is the biggest importer of Brazilian goods and should be paid close attention to. It is also the biggest competitor to Brazil for export of manufactured goods to other Latin American countries. A weak Chinese economy could be bad for raw material exporters but good for manufactures such as furniture makers and other household item manufacturers who will not have to compete against Chinese goods as much.
Igor Cornelsen also says that the Brazilian Real has long been overvalued due to the fiscal policies of the Dilma Roussef administration. This should change with new financial oversight in Brazil’s federal government. Know that the currency is overvalued and expect it to drop in value. By knowing this, you should be able to invest more wisely and see the real value of goods and services in Brazil instead of an inflated value that is going to eventually drop.