What's that magic touch that Brazil has that's made it immune to the global economic downturn? Is it the sun, the sand, and the samba? And why is it that investors are looking to Brazil as a top pick among BRIC markets to invest in? In today's lesson you'll find out the answer to that, and as an added bonus you'll get to learn some cool vocabulary related to the world of finance! Ok, maybe it's not so cool, but it's definitely interesting.
At the end of this lesson you'll be able to:
Cathy: Hon, now that we don't have anymore debt to pay off, why don't we start investing our money...you know, start a nice little nest egg for ourselves.
Doug: Uh, start investing, now...in what?? Sweetie, there's no longer anything to invest in. Haven't you noticed our economy's in the dumps?
Cathy: Well, maybe our economy, but not all economies are in recession.
Doug: Hmm, last I checked, our economy pretty much affects all other economies.
Cathy: Now wait a second, don't you think you're making a bit of a blanket statement?
Doug: Can you prove me otherwise?
Cathy: Alright, fine. There's this article in Canadian Business magazine that talks about how Brazil is one of the top picks of the BRIC markets to invest in. Listen to this:
Cathy: "The Brazilian economy is more closed than the rest of Latin America. Trade is just one-quarter of GDP, and the domestic economy is slowing, but not as much as the foreign sector. Those factors, combined with its strong fiscal stimulus plan and independence from the U.S. economy, make it attractive for foreign investment. Moreover, early in 2008, Brazil improved its debt rating to investment grade. The nation's popularity with investors can be seen in the recent performance of its São Paulo stock exchange, Bovespa, which has grown in tandem with the Shanghai exchange this year. For retail investors, the energy, auto, commodity and agricultural sectors all have potential."
Doug: So it looks like there's more to Brazil than just Carnival and soccer, huh!
All Brazilian politicians are corrupt, that is a blaket statement only 99% of them are really corrupt.