Investors are pouring into Brazil, something Igor Cornelsen calls attention to as a reason for getting involved. Considering that it is the largest country in Latin America and one of the largest food producers in the world, it is hard not to ignore the profit potential. Unfortunately, corruption and dysfunctional economic policies make conducting business more difficult than it may seem.
With a change in the political shift of Brazil, free-market economics may once again be a part of the country. For the time being, the banking industry is still controlled by a small group of companies. Most of the smaller banks have been absorbed into the larger ones and continues to do so.
Igor Cornelsen Give Investing Advice for the Average Brazilian
Igor had been molded by his past work experience in the financial sector that he learned to not over complicate his personal finances. If the average Brazilian can get their personal finances in check and start investing, then there would be less dependence on the government. The reliance on the government had only lead to even more scandals and financial strife so it needs to end.
With such instability happening worldwide, it is a wise idea to diversify one’s assets. Even high-net-worth individuals are diversifying their wealth in overseas real estate, stock markets, and currency to avoid disasters. Taking a look at what is happening in Venezuela, many South Americans are thinking twice about having confidence in their own currencies. This is why the USD reigns supreme in the Americas.
Losers Should Not Keep Investing
The world of investing is a harsh one where only the exceptional or extremely lucky will survive. Especially when it comes to the stock market, too many people are treating it like a casino parlor instead of a wealth diversification tactic. If you are heavily invested in the market and keep losing your life savings, then you need to re-evaluate your life. Instead of investing to get rich quick, invest in yourself so that you can obtain better employment opportunities.
Always Follow the Rules in Brazil
Foreigners that do business in Brazil will likely experience a bureaucratic nightmare in comparison to their home countries. Due diligence is requires in every step in business as theirs are hefty penalties that will set you back even more than the time you saved by trying to bend the rules in your favor.
For example, Brazil has a strict policy of giving employees 1 month of extra pay as a bonus. Some sly foreign investors think that they can get away with hiring people under the table, but many Brazilians are astute about employee benefits. Not only will such employers be paying government fines, they will end up writing those checks for employees.
Also having to do with government inefficiency, investors may even have issues getting the paperwork for immigration issues completed. Whether it is for themselves or for importing foreign employees, the immigration office is not in a rush to complete your paperwork. Even after getting the dozens of papers that were requested, you may find that you need to sweet talk the employees to get those rubber stamps working. Since there is not a demand for legal immigrants, the system has not changed much for the better so foreigners should take that into consideration.
Be Prepared For The Value of the Real to be Realized
Igor Cornelsen had worked too long in banking to be familiar with the different central banking policies of Brazil. For the longest time, the Real has been artificially overvalued by the government and has become a ticking time bomb. In addition, the overvaluation of the currency had stifled competition in exports with other industrialized nations. Since the central bank is selling Dollar swaps in the private market, overvaluation is still going on.
That being said, the Real is not in a situation like Venezuela where the entire population is hit by inflation. Also unlike Venezuela, Brazil has a diversified industry to where they can recover from even that hardest currency hits. What can mitigate the inflation is for the government to improve their policies and clean up the national debt. Until then, citizens still should think about diversifying their money as the currency is still on thin ice.
Be Prepared for China
China has such a massive industry that they can be a blessing and a curse to Brazil. China has shown kindness by purchasing raw materials from Brazil and by investing in their public infrastructure. On the other hand, China is a direct competitor of manufactured goods that they cannot compete even in their own market.
A Little More About Igor
Igor is currently employed with the investment powerhouse, Brainbridge Inc, which is currently based in the Bahamas. Before his current venture, he had worked for some of the largest banks and finance companies in Brazil. Within the entirety of his career, he had also been involved with stock markets and foreign currency trading. He still uses foreign stock trading as his primary income source.
Investing aside, Igor Cornelsen is an avid golf player and even plays competitively to an extent. His favorite courses are in Southern Florida where he also spends a lot of time residing. He lives in Brazil for a large portion of the year as well but he is always doing business and trading in outside countries.
Check out Igor on Vimeo here