Igor Cornelsen is an investment expert and a Brazilian banker. He is the CEO of Bainbridge investments. As an investor, he trusts that having a long-term investment that brings in profits regularly is vital. According to Cornelsen, investment is a career whereby the investors must be ready to put their money in various portfolios for many years so that they can receive returns on their investments.
Being the expert that he is, Igor Cornelsen offers advice to individuals who are planning to venture into various economic sectors. One such sector is banking, where he has provided numerous pieces of information. He believes that before one thinks of investing anywhere, they should be aware of the basics.
Cornelsen’s 4 Quick Tips on investing in Brazilian banking:
There are ten major players in Brazilian banks. Brazil is not only the biggest economy in South America but also the eighth largest in the world. Behind this success are ten leading state and privately-owned investment and commercial banks. Some of the interestingly fastest growing banks include Banco Itau, Caixa Economica Federal, Banco do Brasil, Santader, Banco J Safra, BTG Pactual, and Banrisul. Since its merger with Unibanco, Banco Itau is growing tremendously.
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The real value of the “real”
For several years, Brazil has had an overvalued currency. This factor has led to the loss of value of the exported goods and has developed an enormous current account deficit. In the past two years, the Central Bank of Brazil had to sell dollar swaps in local markets so as to avoid fast depreciation of the real.
The new administration may be less interventionist and as a result, the real might continue to lose value, at a slow pace. This will trigger the investments in industries, making exportation of manufactured products from Brazil more competitive. Also, the disequilibrium in the current is likely to decrease.
A fresh face may change things
Following the appointment of Joaquim Levy as the finance minister, banks are likely to benefit. He is known for his views on fiscal reforms, which contrasts those of Dima Rousseff. He has a Ph.D. from Chicago University and has vast experience at the IMF. Due to these qualifications, he is probably a shrewd policymaker and thus will bring the positive effect to the private sector. While Joaquim’s appointment is hopeful, the effects are yet to be felt.
Pay attention to China
China is Brazil’s primary trading partner. The two countries’ economies are intrinsically interconnected. When the China’s economy is stronger, then Brazil’s economy will also be strong. However, China is also Brazil’s export biggest competitor. As an investor, it is important to understand all the connected markets to the country. This way, you will have a clear understanding of your investments.
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