Brazil has suffered undue negative attention by being portrayed as a country lacking in capital investment, insufficient roads, ports, airports, telecommunication and power generation. Despite this unbecoming picture, there are potential high returns to be realized. By investing in this infrastructure, foreign direct investment is attracted with potential returns for investors over the next 5 to 10 years.
With a wealth of natural resources and enhanced need for infrastructure for its expanding population, Brazil is an attractive market in South America. The former policies by the impeached president, led to inflation leading to high borrowing rates and correspondingly low levels of confidence from foreign investors.
Investment in Brazil is slowly coming to fruition once more with the passing of friendly government policies and legislation leading to fiscal responsibilities and labor laws that make for flexible labor contracts and an open market economy that is accommodating to investors. As a result, investors will begin to feel secure with these market-oriented reforms and lend to credit worthy borrowers.
Igor Cornelsen who is a renowned banker and investment expert foresees a challenge in the macro economy when people with less desirable credit forego their business plans. According to him, this may cripple the macro economy while similarly, giants like the BTG bank, a Latin American Investment bank has syndicated with the infrastructure firm CCR to share the risk. As a book runner, this bank is opening up the world of macro economics.
The interest in infrastructure in Brazil is enhanced with more firms joining the bandwagon. CCR’s value tripled over the last 10 years making it a heavy weight in infrastructure investment. BTG bank is also working with other firms showing interest in Brazil’s need for improved infrastructure. Among them is the EcoRodovias a toll road operator, Odebrecht Ambiental a water company, Lojas Americans a retailer and BR malls also a retail player.
Even as there is greater interest in Brazil’s infrastructure, Igor Cornelsen wisely cautions on understanding the political climate of a country for smart investment. Currently, Brazil’s foreign direct investment is strengthening despite the various upheavals in the political scene. A calm 2018 election will, however, usher in greater business growth that would lead to economic and job growth. The turn-around in the economic scene may also be as a result of the understanding of the scope regarding the corruption investigation. This understanding opens doors for International investors to gain interest in Brazil and invest where it is needed most.
The former government policies may have been based on ideologies rather than on rational economics. According to Igor Cornelsen who is a renowned investment leader, a fresh face at the helm of the Finance Ministry spells hope for Brazilian banks since the Finance Minister’s fiscal reforms are shrewd and may favor the private sector.
Even as Brazil’s economy begins to experience a turn-around for the better, Igor Cornelsen advices experts to pay attention to the neighboring countries since when markets are connected, investments need to be understood and this may lead to greater profits.
About Igor Cornelsen
Cornelsen is a heavyweight investment banker, who has managed some prominent banking institutions. He has made a name for himself as the go-to’ person when it comes to matters investment in Brazil. He has fearlessly and intelligently navigated the complex and volatile stock markets. Igor’s experience stems from extensive research that identifies and leads to investment in undervalued assets with potential to grow.
Cornelsen early career life includes being employed in leadership positions in Brazil. As such, he has a track record from the days of his employment, making himself a giant in the field of investment. His experience in the most influential banks and in-depth knowledge of Brazil’s financial and economic state makes him invaluable in investment issues.
Igor Cornelsen’s conversance with the local laws and the marriage with the local economy has seen many companies thrive under his watch and tutelage.
Semi-retired Cornelsen’s expertise and experience in investment make him an authority in the area. He, therefore, advises and guides people on when to invest and in which stocks, markets or companies to invest in. Cornelsen has a faithful following that raves of his insight and business acumen. Follow him on Twitter, and Facebook to see more of Igor’s thoughts on Brazil and beyond.