Tag Archive | BRF

Four ETFs To Play Brazil’s Prosperity

As fears of weak economic growth continue to prevail in the U.S., Brazil has been a hot ticket amongst emerging markets and is likely to continue to witness a booming economy.

The South American nation is rich in natural resources and is a leader in global agriculture.  The recent global boom in commodities has fared well for the largest national economy in Latin America as its exports of beef, soybeans, coffee, orange juice, iron ore and steel have all increased.  Furthermore, this elevated demand for natural resources is expected to be sustainable as global populations continue to expand and the purchasing power in developing nations increases.  Read More…

7 Reasons To Consider Brazilian Banks

As Brazil continues to witness stellar economic growth, its financial sector appears to show signs of optimism and for good reason. 

First off, the Latin American nation has a healthy balance sheet.  Public sector debt is roughly 40% of GDP and the average capital adequacy ratio of Brazilian banks is 18.2%, as compared to 14.3% in the United States and 10% in China, states a report by Bank of America (BAC).

Additionally, Liam Denning of the Wall Street Journal states that Brazil is under-banked with outstanding mortgages equating to a mere 3% of GDP.  This compares to 72% in the US and 18% in China.  Additionally, deposits equate to 40% of GDP in Brazil, compared to 57% of GDP in the US and more than 100% of GDP in China.  Read More…

5 Reasons Brazil Is Likely To Grow

A steadily growing economy, stable financial market and liberal investment climate has enabled Brazil to prosper and build a foundation of continuous growth in the future.

Currently, Brazil is the 10th largest economy in the world and due to its abundance of natural resources is likely to move up the list.  Brazil is one of the few countries in the world that is self-sufficient in oil as well as a leader in alternative energy sources.  Demand for crude oil will likely increase as the global economy continues to improve, and being self-sufficient in the commodity puts Brazil ahead of many of its competitors.  To further support its strength in the oil markets, the nation just uncovered large new oil beds which are expected to increase output in the future.

On the alternative energy front, Brazil is a global leader in the production and utilization of ethanol.  In fact, the Latin American nation produces more ethanol than Asia and Europe combined.  Brazil’s success in alternative energy is likely to further bolster its strength as other nations, like the United States, continue to place an emphasis on carbon reduction and the use of cleaner sources of energy. Read More…

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