Tips for investors looking to venture in Brazilian Stock by Igor Cornelsen
One of the significant factors that affect the economy of a country is governance. With poor governance, unfriendly laws are passed making it hard for private investors to survive. In Brazil, the leadership of Dilma Roussef made it very difficult for banks to continue making profits. Nevertheless, banks like Banco Itau and Banco Bradesco Still recorded some growth thanks to their strategies.
These two banks only gave credit to people whose creditworthiness was solid. Those aspiring business people were forced to seek refuge from the public banks. Such a strategy is good for the private banks but very detrimental to the economic growth of a country at large.
For those looking to invest in the Brazilian stocks, Igor Cornelsen gives a few reasons why the market is going to remain strong. Some of the ideas include
Thorough understanding of China and its trading operations
Brazil has been exporting raw materials to China for years. China is one of their trade partners. A better economy in China will translate into a better market to the Brazilian goods.
Brazil has been keen in studying the business relation between China and other South American countries to better their relationship as a country and a trading partner. Read more: Igor Cornelsen Identifies 5 Ways Businesses Can Organize To Be More Successful
Pay attention to the ten major players in the Banking Sector
Before you invest in the largest economy in South America, it is worth noting that ten banks control the market. Banco Itau is the most outstanding of all the banks. It recorded a tremendous growth. The banks which include Banco Bradesco, HSBC, and Banrisul among others are a mixture of public and private banks. Learn more about Igor Cornelsen: http://igorcornelsenbr.snappages.com/ and https://pt-br.facebook.com/igor.cornelsen
A new Finance minister could make some favorable changes
Although the overall administration is flawed, the finance docket has a new face now Joaquim Levy who got his Ph.D. degree from the University of Chicago and has experience from the IMF whom according to Igor Cornelsen is likely to bring some new strategies that are economically viable and friendly to investors and Brazil’s economy.
The Brazilian Real is stabilizing
As reported initially on prnewswire.com, over the years, Brazilian currency has been overvalued. A move that has seen export trade lose competitiveness. With the new administration, the value of the real will be undervalued gradually improving the export trade and investments in the country.