Brazil is coming back from the brink of an economic disaster. That’s what Brazil does, according to former banker Igor Cornelsen. Cornelsen is a Brazilian investment manager, and he lives in Florida these days. Mr. Cornelsen knows the “ins and outs” of investing in the Brazilian market. He left Brazil to play golf in Florida, but he couldn’t stay away from the excitement that is part of life in Brazil. Cornelsen investment firm helps foreign investors navigate the rocky economic waters in Brazil, and his investors are happy with his investment strategy because it works.
Igor Cornelsen offers his investors three important tips before they sink money into Brazilian assets, according to an article on cbs8.com. The first tip is, “all investors should connect with Brazilians living in Brazil.” Investment advice from a Brazilian is worth its weight in gold, according to Mr. Cornelsen. They see the market changing, and they also see the circumstances that will make an investment profitable. The second tip from Cornelsen is, “expect to unravel a lot of red tape.” Brazil’s government is notorious for over regulating and under-performing. High taxes, silly regulations, and a restrictive labor market can make any investment in Brazil a nightmare unless investors make informed decisions.
The third Cornelsen tip is, “investors should know all the foreign currency restrictions.” Investors must find an authorized bank that deals with foreign exchange and local currency restrictions. There is no set exchange rate for foreign currency. The transaction sets the exchange rate. There is a commercial exchange rate, but the Central Bank of Brazil can change that rate at any time, according to Cornelsen. Using the wrong foreign exchange rate can be devastating from an investment standpoint. Mr. Cornelsen likes to say, “there is no such thing as free money in Brazil.”