To find one of the hottest emerging markets on the planet, you don't need to look any farther than the country of Brazil. For instance, consider the iShares MSCI Brazil Index (EWZ) surged over 74 percent in 2007 and has posted an average of 56 percent over the past three years. In addition, China’s stock market in 2008 has declined almost 20 percent, while Brazil’s Bospeva Index has increased well over 4 percent, showing super resiliency.

Brazil has been stellar economically with a growth rate about 5 percent per year. The country also has a very healthy foreign trade surplus, large foreign reserves, a robust currency and as mentioned earlier a strong equities market, which are all good reasons to look to invest in this nation.

In 2007, the country received $37 billion in foreign direct investment in manufacturing facilities and business operations, which is twice as much as India. Also, Brazil ranked number three in the world when it comes to the amount of investment capital raised via stock issues, behind only the United States and China.

Brazil has a strong middle class of over 20 million and continues to prosper because of the strong job creation economy, which has added over 4.5 million new jobs since 2000. For investors, it certainly appears that the major growth catalysts are in good shape and in place to add to market profits.

First, Brazil is certainly resource rich and will continue to profit from the higher global demand for all commodities generating very positive investor sentiment for Brazilian stocks because they believe they offer better protection from a global slowdown. Brazil is a huge exporter of basic commodities such as iron ore, nickel, tin, chromite, copper, lead, tungsten, zinc and of course gold. In addition, the country has a big supply of fertile land and an abundance of fresh water, allowing Brazil to be one of the world’s largest supplier of soft commodities like sugar, coffee, beef and chicken.

Brazil also is in a situation where it has energy independence. Decades of exploration efforts for new oil and the development of ethanol as a legitimate fuel source are finally paying big dividends. The country is now free of foreign dependence and will soon be a major exporter of energy, which will add even more cash to the country’s coffers. These factors, along with the nation’s market deregulation and political stability, makes Brazil a very attractive place for investments.

Happy Trading.


Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum
Listen to Jeff at www.ProfitStrategiesRadio.com