At the end of 2014, the global banking industry was surprised with the variance of Brazil’s banks. While banks often suffer along with troubled economies, Brazil’s top banks, including Banco Bradesco and Itau Unibanco’s shares prices increased in 2014 despite of the lack of economic growth in Brazil under the populist policies of Dilma Roussef. The country was also troubled at the end 2014. Noteworthy, Bradesco’ and Itau’s profits increased by 28 percent and 36 percent respectively.
According to Igor Cornelsen, a top Brazilian investment expert and banker, the Brazilian banks weathered the storm because of their knowledge of the market. Their experience over other troubled economic periods was also important.
Cornelsen said that Brazilian banks, particularly those in the private sector were lending to borrowers who are most credit worthy. This situation allows such banks to streamline their costs and offer them a greater sense of security.
Moreover, it means that individuals who have less desirable credit have to borrow from public sector banks or forego their plans. This process may be a challenge to the macro-economy and development of a country. Igor Cornelsen notes that the best thing that the Brazilian authority could do to enable the investors to feel more secure is instilling more market-oriented reforms.
Despite of Brazil’s challenges, Igor Cornelsen is of the view that there are a lot of other reasons that make Brazil the most attractive market in the region. The country has an abundance of natural resources and a rising demand for infrastructure development. It is also among the world’s leading food producers and the biggest in South America.
Before looking at any investment in Brazil, Cornelsen suggests that investors should know the basics. To this end, Cornelsen has developed an easy profile for busy investors to look at prior to investing in Brazilian stocks. Read more: Adicione uma descrição a este tópico
Cornelsen explains that 10 major players in the Brazilian banking industry support the eight largest economies in the world. Additionally, the current finance minister is a shrewd policymaker and a supporter of the private sector. He holds a different view of fiscal reform from President Roussef.
The other important suggestion from Cornelsen is that potential investors should pay close attention to China because it is the largest trading partner with Brazil. Moreover, they should also focus on the real value of the real, the Brazilian currency. This information was originally mentioned on Prnewswire.com
Learn more about Igor Cornelson: