The anomaly in 2014 of the Brazilian banks confused the world. Although the populist policies of Dilma Rouseff led to no economic growth, and troubled economics, Brazilian banks must still weather the storm. According to Igor Cornelsen, an investment expert, and top banker in Brazil, the secret is in market knowledge. Read more: 5 Ways To Make Your Business Healthier: Investment Advisor Igor Cornelsen Gives His Insight
The banks only lend to clients who are worthy of the credit. This provides security to the banks, streamlines costs, and send individuals with undesirable credit to the banks in the public sector.
Igor Cornelsen created a simple profile to brief investors considering adding stocks from Brazil to their portfolios. He says ten major state, and privately-owned investment, and commercial banks influence Brazil’s economy. He believes Guido Mantega’s new economic matrix failed because it was not based on rational economics.
Brazil’s banks are hopeful due to Joaquim Levy’s appointment as finance minister. His views contrast the populist ideals of Dilma Roussef. His background at the IMF, and PhD from the University of Chicago combine to make him the private sector’s friend in an inhospitable government.
Igor Cornelsen believes Brazilian raw materials will receive good prices due to the stronger economy in China. Brazil’s largest trading partner is China, although they are Brazil’s fiercest competitor for industrialized goods imported to Latin American countries. Understanding investments is based on watching the connected markets, and this is what will lead to larger profits, and more success.
The currency in Brazil has been overvalued for many years, and this is the reason competitiveness has been lost for the exportation of industrialized goods. This has been responsible for the large account deficits suffered by Brazil. Learn more about Igor Cornelsen: https://bs.linkedin.com/in/igor-cornelsen-86830840 and http://igorcornelsenbr.snappages.com/
To ensure a depreciation of the real could be avoided, Brazil has engaged in dollar swapping within the local markets for the previous two years. The Central Bank of Brazil did this because the currency is still overappreciated.
The new administration is expected to be less interventionist, and use a controlled pace to handle the consequences of the devaluation of the real. This should spark industry investments, and add competitiveness to exporting Brazilian manufactured goods. This should in turn decrease the current accounts disequilibrium.