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 in Brazil. 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, according to Lulu.com. 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.