Igor Cornelsen is one of the top English-speaking analysts of Brazilian banking. Fortunately for everyone involved in the financial market, navigating South America’s only Portuguese-speaking country’s financial sector has never been as easy as with valuable insight from Mr. Igor Cornelsen. He recently offered four tips for astutely navigating the Brazilian investing world – let’s get started.
Brazil’s currency, the real, has been overvalued for some time
It’s undebatable that Brazil’s currency isn’t worth what current exchange rates suggest. Since the real is overvalued, it’s not worth investing in.
Further, many industrialized goods exports aren’t in good shape because of this overvaluation. As such, prospective investors should stay away from these exports, as well as anything involving the real – think currency swaps or simply holding the real. Read more: Adicione uma descrição a este tópico
The status of China’s market means a lot
Every seasoned investor understands the link between the economies of China and Brazil. China exports more raw materials to Brazil than any other player in the world. Similarly, Brazil imports more goods from China than any other country. Investors should keep a close watch on what’s going on in China, as happenings usually reflect into Brazil’s economic marketplace.
Don’t invest outside of Brazil’s top ten banks
While some countries have loads of top-notch banks, Brazil, despite having a higher population than all countries in the world except four, only has ten reputable, top-tier banks. In storing money, securities, and other assets, investors that stray from the top ten institutions in Brazil may experience significant losses that aren’t backed by Brazil’s government.
The entry of new politicians could mean good things
Brazil’s political sphere hasn’t featured the best politicians, many of them being quite corrupt. However, new entrances of politicians might turn around Brazil’s economy, something investors should keep watch over.