There is some good news coming out of Brazil this year. Brazil is not considered the worst economic performer in the world. That title goes to oil-rich Venezuela. Venezuela’s economy is going to shrink by more than 3 percent in 2016, and Brazil’s economy is projected to contract by a little more than 2 percent, according to some economists. The biggest issue facing Brazil’s economy is the political situation, according to investor Igor Cornelsen. Cornelsen is familiar with the Brazilian politics. When he was managing the big banks in Brazil, he was exposed to the vacillating regulations that keeps Brazil in turmoil.
Even though Brazil is in a deep recession and the unemployment rate keeps increasing, Igor Cornelsen believes investors can make money investing in Brazilian companies. The stock market hasn’t been kind to investors lately, but Cornelsen and other investors say there is money to be made if investors are patient.
Mr. Cornelsen is known for his ability to pick stocks on wikidot.com that increase in value. His firm, Bainbridge Investments Inc. is based in Florida, but Cornelsen still focuses on the Ibovespa market. The Ibovespa market hasn’t gotten off to a good start in 2016 thanks in part to the Chinese sell-off that caught the market by surprise at the first of the year. But the Ibovespa market is notorious for making a comeback in spite of the economic and political situations in the country. That’s why Igor Cornelsen on findthebest continues to invest in stocks that are undervalued.
The forecast for Brazil stocks is not great since the 2016 gross domestic product projection and the last year’s economic contraction have put the country in the deepest recession since 1901. Brazil credit rating isn’t helping either. Two credit rating companies have downgraded Brazilian debt to junk status, and that makes foreign investors very nervous, according to Cornelsen.
But Cornelsen believes the worst is behind Brazil. He thinks the stock market will make a comeback in 2016. The proven growth stocks will come alive again, according to Igor and other companies will follow. Igor says nothing makes companies work harder than lost value. Brazil has gone through several recessions over the last 125 years. In the old days, economic downturns weren’t called recessions because Brazil wasn’t considered an emerging economy until ten years ago. The stock market was established in 1890, but it didn’t reach world status until 2011. At that time, the Brazilian stock market was the 13th largest market in the world with a market capitalization of $1.2 trillion, according to Cornelsen.
Igor believes that investors can make money this year if they invest in stocks that have a proven history of consistent returns. Igor also thinks stocks in the energy sector and information technology sector will rebound faster than other stocks.