Brazil is the king of South America. The country may not be part of Spanish-speaking Latin America, but it is a huge part of Latin America’s economy. Brazil was riding high when China was buying everything under the sun. But when China hit an economic wall due to a slowdown in manufacturing, Brazil went into an economic nose dive. The country is just pulling out of that nose dive. For the last four years, foreign investors didn’t want to talk about Brazil. The political turmoil along with high inflation and unemployment put a “closed sign” on the doors of Brazil’s business community.
But Brazil is coming back, and investment managers are pushing Brazilian assets again. One of those managers is Igor Cornelsen. The former bank executive, and current investment genius who knows how to make money in his country. His Florida company, Bainbridge Investments, helps foreign investors navigate the political and economic channels in Brazil. He usually shares three tips with potential Brazilian investors. The three tips are simple ways to turn a profit in a startup market that has a lot of potential.
The first thing Igor Cornelsen likes to say is get acquainted with the locals if you want to make money in Brazil. Brazilian love to share information, and they are social media junkies. If investors find a reputable contact in Brazil, and they do their own research, part of a profitable investment equation is in place. The next thing Igor Cornelsen likes to say is expect the unexpected, especially when it comes to red tape.
The Brazilian government is famous for unnecessary red tape when it comes to regulations, taxes, and investments. But the third Cornelsen tip is also important. Investors should know how the currency exchange market works in Brazil. The Central Bank can change the commercial exchange rate at will. But there is also a regular exchange rate and a black market rate. Both rates, change daily.
Brazil happens to be an attractive place for investors despite its endless scandals. It has a huge market with over 200 million inhabitants. This is one of the things that make Brazil an ideal market for multinationals.
Because the stock prices are at the bottom of the cycle, and the attraction of the natural resources in Brazil, more people have considered investing in new businesses in this nation. It’s anticipated that this will be the turning point for the Brazilian economy. Although it sounds exciting to invest in Brazil at the moment, how should investors start? Igor Cornelsen’s pointers:
- Connecting with the natives – just like the other aspects of the Brazilian culture, finance and business is determined by relationships and networks. Igor believes that it’s not difficult to find the connections.
- Get ready to adhere to regulations – Cornelsen recommends that potential investors be ready for the red tape when entering the market. Investors have to face regulatory complexity, market rigidity, pervasive bureaucracy, and high taxes are obstacles investors will face.
- Understand foreign-currency restrictions – only authorized financial institutions are allowed to conduct foreign currency transactions.
Igor Cornelsen is a famous Brazilian investment expert and banker. He has always known the potential Brazil has to become a major player in the economics world. The tips he shared can be helpful to investors who are looking to penetrate the Brazilian market.