Once upon a time not that long ago Brazil was South Americas most healthy economy. It was showing double digit growths and by 2010 had an economy worth $2.1 trillion. At some point bigger than Indias. It even saw it join the coveted G7 club. But times have changed, and Dilma Rousseff’s populist policies have barely helped calm matters. This year the economy is expected to contract by 3%, and stocks in Brazil are in freefall. The countries former richest Honcho was recently declared bankrupt amongst a corruption scandal engulfing the nation’s state-owned company Petrobras.It has seen its stock go in a free fall and are now down by 33%.It is not the only one. Many stocks in the Brazilian stocks have been in steady decline for years now. The country’s Currency the REAL has also lost value. The Standard & Poor’s rating service has downgraded Brazilian debt to junk status. It is expected to contract by 3% this year and 4.5% next year. Things are so dire that they can only get better.
So is this the best time to buy Stock in Brazil? At this rate unless you expect a total collapse of the country, then yeah this is the best time. Several Brazilians companies are highly undervalued.BR Properties has a market capitalization that is half its stock value. Despite the corruption scandals engulfing the country, the public mood will force that current administration to either resign or change its ways. The action will increase the investor’s mood for Brazilian stock as things currently stand; many countries have simply opted out of Brazil.
Igor Cornelsen continues the above argument on Brazil. He says on Tumblr the country is the best investment destination thanks to its raw basics. He says before investing; one ought to look at the bare minimum. Brazil is the largest country in South America with the largest population. It also has the most need for infrastructure and is growing fast.
Mr Igor Cornelsen outlines on findthebest four reasons as to why any serious investor should carefully consider Brazil. He says the Brazilian economy has ten significant and big banks who can help it in its recovery process. They have also seen tremendous growth including ItauUnibanco (ITUB) and Banco Bradesco (BBD) which saw their profits increasing my 36% and 28% respectably. These have also seen their stock rise by a third. He says Chinas robust growth and demand for Brazil’s raw materials was also fueling its growth. He says it will have healthy competition with China for manufactured goods and expects the value the of REAL to appreciate. He mentions Brazil has had an undervalued currency for years. According to him, invest now is his advice.