Easy method to Buy Brazilian Stocks

It is very important to read widely before buying Brazilian stocks. Most companies have a lower price in stocks than usual after analysts predicted a crunch in the Latin American market. But wait, it’s not time to rush and buy  a whole lot of stocks because of the attractive low prices. This is because you have to know first if the stocks will go up if and when the companies recover. Economists have recently been cutting growth projections from what they figured them to be in the past. This has inspired some fear in investors and so it is crucial to be careful.

In mid January, stock exchange prices in the Brazilian market had hit a five month low, causing jitters all around. However, the local index, the Ibovespa, has shown signs of gaining and is getting higher and higher than it was before. The shares of leading steel maker CSN are trading at alarmingly low prices, with analysts predicting that it may have to fork out at least $3 million to buy out its partners especially in the iron ore unit, Namisa. The shares took the highest plunge in a day with a 7.46% loss which is a very worrying trend.

On the other hand, buying Brazilian stocks may prove to be very lucrative. This is especially true if you want to make them a long time investment. Bearing in mind that American companies are on a constant decline and investors are shipping out, it is only reasonable to expect them to shift down south. The Brazilian stock market crash is a worrying trend and especially for major companies like CSN, which is greatly responsible for this. However, not all is lost and there are some Brazilian stocks worth considering because of the possibility of them gaining in the future.

Instructions

  • 1

    These are TS The mobile phone operator may have some valuable stocks to offer despite the bleak outlook of Brazilian economy as a whole. The company, whose 67% is owned by the Italian phone company, Telecom Italia, has more than 7-0 million users across Brazil’s major cities. The company may not benefit due to its calling services especially due to the decline in economy but its value added services like data packages are a major boost with their revenue growing with 24% in 2013 alone.

  • 2

    Embraer; The jet company is set to make amazing steps when it comes to sales in years to come. This has been projected to 9.0 to 9.5%, a rate higher than that of Boeing or EADS. Embraer has grown since its focus shifted to the airplane leasing business and not just commercial flights. Embraer could prove to be a huge competitor and a very resilient one to Boeing in years to come.

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    Itau Unibanco Holdings S.A;The largest bank in Brazil in terms of members, it is also the best operated in the world. It is a component of the Dow Jones Sustainability Index and has been for more than thirteen years. Almost 62% of its investors come from foreign markets, making it very attractive to the foreign markets and to many investors.

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