Majority of banks around the world suffer when the economy of their particular country is troubled. However, we cannot say the same about two Brazilian Banks, Itau Unibanco (ITUB) and Banco Bradesco(BBD). The two saw their shares rise and profits increased amidst a shaky economy in 2014. Read more: Igor Cornelsen Identifies 5 Ways Businesses Can Organize To Be More Successful
Igor Cornelsen demystifies the mystery of how this was possible. He explains that the two private banks in the largest South America economy were able to overcome the shaky economy due to experience over other similar years and knowing the market all too well. The bankers were only lending to individuals that were most worthy of credit thus streamlining costs and getting security.
Why invest in Brazil? The country has a booming population and an increasing need for infrastructure development making it an attractive market in South America. With all this said, Cornelsen believes that many investors do not know the basics of Brazilian banks.
One primary thing that an investor should be aware is that there are ten major banking players in the country. They are Itau Unibanco, Caixa Economica Federal, Banco Bradesco, HSBC, Citibank Brazil, Santander, Banco do Brasil, Banrisul, BTG Pactual and Banco J Safra. This wasoriginally mentioned on prnews.com
Igor Cornelsen also believes that a new finance minister could change things. The new finance minister has worked with IMF and is also a Ph.D. holder which may mean that he might return to conservative policies. He is a shrewd policymaker and appreciates the private sector.
Cornelsen also advises the investor to know all the connected markets so that they can better understand their investment and ultimately get profits and succeed.
He was referring to the Brazil’s largest trading partner, China, giving insight into the benefits of a strong China economy to the prices of Brazil’s raw materials. It is also important to note that China is also a competitor of export of industrialized goods.
Finally, the Brazilian banker explains the last basic thing investor should note, is an overvalued currency. The overvaluation has led to enormous current account deficits due to lost competitiveness in the export of industrialized goods.
Igor Cornelsen is optimistic that the administration will intervene leading to devaluation of the currency. This will result in the competitiveness of Brazil’s export of manufactured goods.
Learn more about Igor Cornelson: https://bs.linkedin.com/in/igor-cornelsen-86830840 and http://igorcornelsenbr.snappages.com/