Investment banker, Igor Cornelsen, knows the Brazilian banking business as well as the investment market. He retired from banking in 2010, but he is still a very active investor. His company, Bainbridge Investment Inc. is based in South Florida, but his love for Brazilian stocks still keeps him in the Brazilian stock market.
Cornelsen doesn’t sugar-coat the current condition of Brazilian stocks. The Brazilian stock market has been losing value the last three years. A recent surge in market prices came when the impeachment of President Dilma Rousseff was announced by Brazil’s speaker of the house. Igor says there is no better time to invest in Brazil. Stock prices will rise in 2016 and Brazil will get its political and economic issues resolved next year as well, according to Cornelsen.
Most investors don’t have a solid understanding of Brazilian stocks, so Cornelsen has outlined the best Brazilian stocks to buy now. His first picks are bank stocks. Banco Bradesco, Banco Itau Holding Financeira S.A. and Unibanco are Igor’s choices. If chemical stocks are of interest, Cornelsen invest in Braskem S.A. or energy stocks like Petroleo Brasileiro S.A. also known as Petrobras. Petrobras does everything in the energy industry in Brazil. Another energy company worth investing in is Petrobras Energia Participaciones S.A.. That energy company focuses on oil and gas as well as chemicals. Ultrapar PtpADR, distributes liquefied petroleum gas and is another good Brazilian stock.
Cornelsen also likes food stock like Companhia Brasileira de Distribuicao. CBD is the national supermarket chain of Brazil, and Companhia de Bebidas das Americas. AMBEV is the largest distributor of beer, soft drinks and beer, plus it distributes PepsiCo. International products as well.
Cornelsen believes investors must invest in mineral and metal stocks. He likes Companhia Vale do Rio Doce and steel producer Companhia SiderÃºrgica Nacional. CSN also produces other minerals like zinc, limestone, dolomite, tin and flat rolled steel. Paper stocks like Aracruz Celulose S.A., and Votorantim Celulose e Papel S.A are a good investments right now.
Brazilian telecom stocks are also worth the investment. Wireless cellular company, TIM Participacoes S.A. and fixed line company Tele Norte Leste Participacoes S.A. are good stocks that will go up in 2016, according to Cornelsen. Igor also recommends Brasil Telecom S.A. because the company is into fiber optics, wireless and the Internet. The other telecom company that provides Internet service on agel.co is Vivo ParticipaÃ§Ãµes S.A..
Mr. Cornelsen recommends other categories as well, but at this point in time energy, telecom, food and bank stocks make the most sense. Most seasoned Brazilian investors believe that there is a lot of money to be made in Brazilian stocks in 2016 and now is the time to get a firm foothold in the market.