Venturing into a new market requires proper planning and advice from experienced investors in that market. Brazilian market is no exception to this as business people require guidance to enable them perform well. This is why Igor Cornelsen; a famous Brazilian banker and investor, has created a concise profile to guide busy investors as they consider Brazilian stocks.
To begin with, it is important to note that Brazil is the largest economy in South America, taking the eighth position worldwide. This is supported by the major state and privately owned investment and commercial banks including Banco Bradesco, HSBC, Banco J Safra, Caixa Economica Federal, Santander, and Banrisul. Learn more about Igor Cornelsen: https://about.me/igorcornelsen1
Igor explains that the new finance minister Joaquim Levy has brought hope to Brazil’s banks. The minster’s views on fiscal reform are a stock contrast from the President’s populist ideas.
Igor sees him as a friend to the private sector and a shrewd policymaker in a government that is otherwise unwelcoming. Additionally, Igor says investors should pay attention to China since it is the country’s largest trading partner.
The economies of Brazil and China are actually intrinsically linked, and a stronger Chinese economy leads to favorable prices for the Brazilian raw materials. Read more: Igor Cornelsen Identifies 5 Ways Businesses Can Organize To Be More Successful
The other face of the relationship, however, is that China is Brazil’s greatest competitor when it comes to exporting industrial commodities to other Latin American countries. Igor advises that keeping an eye on all the linked markets will give the investors a greater understanding of their investments leading to more profits and success.
Brazil has for several years experienced an overvalued currency. This has made the industrial goods export to lose competitiveness and created a big deficit of current accounts.
Igor Cornelsen hints that the Central Bank of Brazil has in the past few years sold dollar exchanges in the local markets to avoid a rapid depreciation of the currency.
PR Newswire believes that if the new administration will be less interventionist, Igor believes that exporting Brazilian manufactured goods will be more competitive. This will eventually help reduce the disequilibrium of the current account.