What Every Investor in Brazil Needs to Do, According to Igor Cornelsen
A majority of wealthy people accumulate unusually large sums of money through innovation, inheritance, or investing. Learn more about Igor Cornelson: https://twitter.com/igorcornelsen and https://about.me/igorcornelsen1
While the first two are far less common than the latter – investing – tucking one’s money away in securities and other assets to earn a higher rate of return than inflation is most difficult. Investors must be aware of current events, financial happenings, and general news, especially when dabbling in international markets.
This holds especially true for Brazil, as its banks and other financial institutions are quite different from those throughout the majority of the English-speaking world.
Fortunately for investors stowing their assets in Brazil’s financial markets, Brazilian banking analyst Igor Cornelsen has shared four important tips that investors need to keep in mind. Though they’re not a cure-all, the following four tips are unarguably characteristics of astute investors. Read more: Investing in the Future Success and Adicione uma descrição a este tópico
Brazil doesn’t have oodles of trustworthy banks. Even though some small, rural banks can be and are worthy of domestic and foreign investors’ trust, Igor Cornelsen suggests that it’s far safer to trust one or more well-known, established banks with hundreds – even thousands – of branches across Brazil. There are about nine banks worthy of one’s business, among the ranks of Banco do Brasil, Bradesco, and Itau Unibanco.
China does tons of trading with Brazil, with the South American country taking in far more raw materials and goods than what it exports to China. This makes the two nations’ economies intrinsically interconnected, suggesting that investors should keep a close watch on the pair’s relations.
Another aspect of Brazil importing such high volumes of raw materials from China indicates that its currency, the real, is overvalued. In further support of this assertion, Brazil’s national bank has been engaging in currency swaps throughout the past half-decade, meaning its currency must be not worth its price stated on financial markets. As such, investors need to stay away from the real.
Political changes could mean good, or bad, things for Brazil’s markets. Keeping up with news and current events should effectively hedge against political appointments, step-downs, and mixups.