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:

Ads

You May Also Like

João Hélio Fernandes, the 6-year-old boy killed in Rio, Brazil

Medieval Murder in Brazil Highlights Rio Brutality

With only days remaining until the start of Carnaval, and after weeks  of  escalating ...

Brazil’s Shoes Exports Drop 9%, But Revenues Zoom Up 8%

External sales in the Brazilian shoes sector dropped 9% from January to July this ...

122,000 Brazilian Kids Started Working in 2005

Brazil’s non-governmental organization National Forum on Prevention and Eradication of Child Labor (FNPETI) has ...

Brazil Justice Fines Priest for Saying Pro-Abortion Woman Is Pro-Abortion

A panel of judges in BrasÀ­lia, the Brazilian capital, has ordered a Catholic priest ...

How Cold Heart and Zeal for Rules at Pharmacy Killed Young Brazilian Mother

Salvador, beautiful city, what happened to you? Salvador, Bahia, Brazil, December 14, 2007. Viviane ...

The Long Court Battle Between Chevron and the Amazon Indians

A new scientific analysis submitted to Ecuadorian courts by technicians from ChevronTexaco-in a historic ...

With 13 Million Small Businesses, Brazil Is World’s 7th Most Enterprising Country

Brazil is the seventh most enterprising country in the world. This information was disclosed ...

Brazil Shrimp Exports to US Tumble 54%

After rising steadily for the six consecutive years, Brazilian exports of shrimp to the ...

Brazil Mensalão’s Whole Story: Chronologically

May 10, 2005  A grainy black and white video is made public showing a ...

How Much Will Brazil Hike Interest Rates?

Brazilian markets rose modestly, this Monday, ahead of a flood of U.S. earnings releases ...