Brazil has one of the world’s largest economies and is home to 220 million people, making it the fifth most populous nation. These two facts make it a tempting market for investors. Igor Cornelsen is an expert on the Brazilian market as he has been a bank industry executive and owns an investment firm, Bainbridge Investments Inc. He said that investors need to be cautioned that navigating Brazil’s economy can be very tricky.
The Brazilian federal government has complex hurdles in place for investors and businesses. Its economy frequently has booms and busts. The banking industry has been especially unpredictable since the 2008 global financial crisis. Igor Cornelsen says this is due to former Brazilian President Dilma Rousseff putting in place several protectionist policies that have largely backfired.
Her policies worked at first. Brazilian GDP grew by 7.5 percent in 2010. Growth then slowed to just 0.9 percent in 2012. Eventually, protectionist policies started negatively impacting multiple industries and wreaked havoc for banks. The only two banks to continue doing well are Banco Bradesco and Itau Unibanco as they had the financial resources to weather the storm. Big banks bought little banks who couldn’t deal with the financial mess.
Igor Cornelsen saw this coming when protectionist policies were being proposed. He made a fortune investing in Brazilian businesses and commodities. However, he saw the writing on the wall and started investing outside of Brazil several years ago. He’s now even left the country and lives in South Florida. He isn’t interested in moving back to Brazil as there are no signs the government knows what it’s doing with the economy. He helps high-net-worth individuals make money through investing. He says there are always good deals in the stock market and looks to buy stocks that have been unfairly devalued by other investors. Read more about Igor Cornelsen: https://affiliatedork.com/economic-confidence-is-improving-in-brazil-according-to-igor-cornelsen