This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Brazil: 'A Country That's Just Starting Its Upswing'

Editor's note: This was originally published on RealMoney . It is being republished as a bonus for readers. For more information about subscribing to RealMoney, please click here.

Brazil has been a much-discussed topic in investing circles for some time now, and having just returned from a recent trip there, I am eager to share with RealMoney subscribers my "boots on the ground" notes and perspective.

It was instructive and fascinating to be a front-and-center spectator not only of the vibrancy of Brazil's blossoming economy and free market, but also of its captivating and energetic culture. Contrary to what Charles de Gaulle of France once wryly described as "not a serious country," the largest nation in South America, with a population more than 190 million people, is quickly becoming not only a regional powerhouse, but a major player on the global stage.

In this multipart look at Brazil, my aim is to shed some light on where we are in the Brazilian growth cycle; to break down my trip, with regard to the many investment opportunities available; and I'll finish with a personal anecdote summing up the overwhelming challenges of its ugly legacy of crime and corruption.

China Watch: Brazil's One Way In (Video)

One way to get in on the action with China is to play Brazilian companies with Chinese connections. Patrick Schultz reveals how we can play one emerging market to play another.

To watch the video, click the player below:

Plus, don't miss China Watch Mail Bag: Best Brazil Bets.

Brazil has a wide range of investment opportunities, but to understand where it can go, a few facts are necessary to appreciate where Brazil has been. With so much fawning over China and India, it may surprise many that the benchmark Bovespa is the best-performing index of all the emerging-market BRIC countries on year-to-date and two-year time frames.

Two years ago Year to date Last close Two-year return% YTD date %
Brazil -- Ibovespa 34,399.00 62,815.00 64,613.79 46.80% 2.90%
India -- BSE Sensex 9,884.51 20,465.30 14,293.32 30.80% -30.20%
China -- Shanghai Composite 1,574.47 5,261.56 2,760.42 43.00% -47.50%
Russia -- RTS Index 1,329.87 2,296.56 2,342.75 43.20% 2.00%

I believe Brazil is a country that's just starting its upswing. I don't fear the rapid boom followed by the fated and ugly bust that has plagued this country for decades. I believe Brazil is still in the early innings of a powerful global game of wealth creation.

This early-cycle investment thesis around Brazil -- let's call it "early capitalistic investing" -- is rooted in four basic pillars: arable land for agriculture, commodities for basic materials, oil from massive offshore discoveries and environmental expertise in ethanol and flex-fuel technology.

These secular drivers are still budding, and their stocks are in rip-roaring bull mode. I see no material drop in global demand for any of these pillars of growth (think China, India, Russia, Africa). If anything, I see demand increasing.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PBR $7.71 0.00%
RIO $33.66 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs