Why Brazil Will Remain Attractive

NEW YORK (The Street) -- Brazil has been a hot ticket among emerging markets and has recently won the bid for two major sporting events, which will most likely further boost its already-booming economy.

The South American nation has been selected to host the 2014 World Cup Soccer Championship as well as the 2016 Summer Olympics. A combination of these two sporting events will likely spark a demand and surge in infrastructure in that the facilities needed to host the events have still not been built, and when these facilities are built, an investment catalyst will likely result.

To add to its attractiveness, consumer spending constitutes a big part of the country's success, which means that it is not the government that is dumping hoards of cash into the economy to keep the nation afloat. Additionally, the government mandates that subsidized loan rates on homes and appliances be underwritten by state-owned lenders, which adds to the stability of the nation's financial system.

Thirdly, interest rates in Brazil are at 8.5%, marking the lowest they have ever been in real terms, which makes borrowing more attractive and further stimulates the economy. Lastly, Brazil's public-sector jobs continue to grow and welfare payments have been increased by 30%, indicating that the nation's government is growing and is well funded.

In addition to all of the aforementioned reasons, Brazil offers something that many others don't: It has vast resources that the rest of the world not only wants, but needs. As supply-and-demand forces put price pressures on these resources, and eventually drive their prices up, the revenue generated will make the nation richer and further strengthen the nation's financial assets.