Investing in Brazilian Equities

July 30th, 2015

It may not look like it, but now is the time to invest in Brazil. 2014 saw the President Dhilma Roussef get voted in for another four year term as the head of Brazil. The election was a funny thing though because voting is mandatory in Brazil, and she won by a little over 3 million votes out of over 115 million. When she was announced the winner the markets basically went into a panic mode because she’s not known for her strength in financial policy. She was able to win by carrying the welfare heavy states. Since she’s been in office the economy that was growing by leaps and bounds has hit a brick wall. Inflation is over 6% and the unemployment rate looks low, but the workforce is declining at a percent a year. That is why there was panic. Investors sold off their holdings because they anticipated more of the same policies that got them in the tough spot they’re in now, but there is always a way to capitalize.

There are times in finance when everyone will go one direction and a savvy investor will see the opportunity in what they left behind. Analyzing the equities markets is a good place to start. The Ibovespa trades lower than both the Dow Jones and the S&P which is amazing. Also companies are still booming in Brazil. They’re still producing everything their country and the people need while consistently turning a profit. If investors were selling off their equities, then that offers a great opportunity to buy portions or companies in whole at a very a good price, and these companies are still operational and profiting. The equities panic selling created the ideal environment for foreign bargain shoppers because technically Brazil is a still growing, and it is one of the most populated countries in the world so the need for manufacturing will only increase.

It’s always smart to find a financial adviser with a good reputation before jumping into a foreign market, and Igor Cornelsen is a prime example. Mr. Cornelsen is an expert in the world of finance, and he happens to know quite a bit about Brazil. He’s contributed to many online publications offering free and common sense advice specifically about Brazilian investing. His experience in Brazil comes from holding many positions in top Brazilian banks. Not many people will know Brazil like Igor Cornelsen.

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