Brazil is home to a unique financial market, a place in which many international investors don’t truly understand the ins and outs of investing. Fortunately, Igor Cornelsen has shared four key tips that every investor can take advantage of.
PR Newswire originally shared this story in January of 2015, although these bits of advice are evergreen, still relevant in today’s market and sure to be for years to come.
The real isn’t as valuable as its face value suggests
Brazil’s currency is the real, and has been overvalued since the dawn of time – maybe not that long, but at least for the past decade. Igor Cornelsen suggests that investors stay away from currency swaps involving the real, or even simply holding the currency. Transactions associated with the real often end up in turmoil for involved investors – it’s better to learn the easy way, staying away from the real from the get-go.
China’s economy has effects on Brazil’s
Brazil hauls in more raw materials from China than anywhere else in the entire world. Similarly, China is Brazil’s largest trading partner. Even further, both of these nations export tons of manufactured goods to countries in Latin America. Interactions between the two are important to make note of, as they often warn investors on what’s to come. Learn more about Igor Cornelsen’s methods at ireport.cnn
Inbound finance ministers could change up Brazil’s financial futures
Most recent Brazilian politicians, including Guido Mantega and Joaquim Levy, haven’t lent any favors to Brazil’s economy. As such, investors should be active in learning about Brazil’s political landscape, as appointments could instantaneously stimulate the markets.
Trust big banks
Consumers, inside or outside Brazil’s borders, should stay away from trusting their assets with small, independent banks in Brazil. Whether they’re fond of large financial institutions or not, storing assets in their hands is invariably safer than not dong so.