Brazil’s Money and Stock Market Have Become the Planet’s Strongest

Brazil's stock market, Bovespa Martin Weiss, author of the investment newsletter Money and Markets. has just examined the Brazilian market and the factors influencing the growth the economy is experiencing. He discusses Brazil's economy and how and why its marketplace is headed towards great growth.

Just last week, Standard & Poor's surprised the financial markets with an upgrade of Brazil's credit rating, prompting another surge in Brazilian assets.

"Brazil's currency, the real, jumped by the most since September, hit a new six-year high, and busted through the 2-per-dollar level for the first time since 2001," according to Dr. Weiss.

What are the forces behind Brazil's market blast-off this year?

The first force, he says, is the underlying firmness of Brazil's launch pad, its foundation for growth. Brazil's President, Luiz Inácio Lula da Silva, built that foundation by actually holding back the economy.

He paid off the country's debt to the IMF. He built a huge trade surplus and made big headway in balancing the federal budget. And he focused on stabilizing the currency.

For most of this decade, while China was growing by leaps and bounds, Brazil was lagging behind. But all that changed early this year: Brazil's government has taken new steps to unleash pent-up demand and let the economy start taking off.

"This investment explosion is key. With it, Brazil is revving up for an economic take-off that could rival China's and India's,"  Weiss explains.

Finally, Brazil's currency, the real, is the strongest among all major currencies in the world this year. Its stock market is leaping ahead of all other major markets. Brazil is now in the spotlight, beginning to attract a torrent of international capital:

South Korean car manufacturer Hyundai announced plans to open a new facility in Brazil. Brazilian airline TAM signed a partnership agreement with U.S. carrier United Airlines and a delegation of 16 Saudi businessmen are eyeing new investment opportunities.

Tags:

You May Also Like

Brazil Gets Tough on Smugglers

The Federal Revenue agency has intensified its surveillance this year along Brazil’s border with ...

Helping Hand

By Brazzil Magazine What is being done to help favela residents in Brazil and ...

Brazil Allows Farmers to Use Non-Certified GM Soybean Seeds

Brazil’s federal government extended permission to use non-certified soybean seeds for the next growing ...

Brazil’s Women Prisoners: Invisible and Wronged

Out of every 100 prisoners in the state of São Paulo, Brazil, 5 are ...

The Family

Talking to himself the old man whispered something I didn’t understand. And then he ...

Cover story June 95

Throughout the world the Brazilian woman has earned a reputation for sensual indulgence and ...

Haiti Is Giving Brazil a Chance to Prove Its Mettle Beyond Cheap Talk

After a promising beginning that included, among other accomplishments, being the second country in ...

Brazil: We Will Not Tolerate the Plunder of the Amazon

I’ve been in the Amazon almost a week now and from the moment I ...

Brazilian Oil Multinational Petrobras Building 9 New Platforms in 4 Years

The international financial crisis and the resulting postponing of the disclosure of the Petrobras ...

LETTERS

Organized over the Internet, gringo sambistas from 19 countries invaded the Sambadrome in Rio ...