Finally, there’s some good news coming out of Brazil. The Brazilian Congress just voted to impeach President Dilma Rousseff, and the stock market hit a 10-month high. Igor Cornelsen, the Brazilian banker, and investor told his partners recently that an advance in commodity prices help boost the price of crude oil giant Petroleo Brasileiro SA stock price. Cornelsen also said miner Vale SA shares rose as well as shares in companies that depend on domestic demand. A change in government in Brazil is long overdue, according to the former banker turned full-time CEO of Bainbridge Investments on ireport.cnn.com.
Igor Cornelsen is well-known in Brazil’s financial industry. Igor Cornelsen managed several of the top banks in Brazil when the country was one of the top emerging market investment countries in the world. Igor Cornelsen decided to retire and move to Florida before the recession hit Brazil. He moved to Florida to enjoy golf, but he couldn’t pull himself away from the investment business. He decided to start Bainbridge Investments so he could help other investors navigate through the endless red tape and government regulations that have hurt investors in the past.
President Dilma Rousseff has been losing support for the last three years. She is accused of juggling the books on whitepages.com so the budget numbers would look better than they actually are. Her economic policies have not helped the country pull out of the recession. The latest projections show the Brazilian economy will contract by more than 3.5 percent in 2016. The news that Rousseff could be ousted prompted foreign investors to jump back into Brazilian assets, and Igor Cornelsen believes the recent spike in the stock market will continue this year.
Brazil’s Senate is getting ready to debate the impeachment issue, and if the members of that House agree with the lower Congress, Rousseff could be out within 30 days, according to Mr. Igor Cornelsen.
Foreign investors are excited about what’s happening in Brazil. The people, on the other hand, are still trying to cope with the more than 10 percent inflation rate and the rising unemployment. The Zika virus has also had an impact on the Brazilian population. Millions of Brazilians have been infected with the virus and the effort to find a vaccine has been painfully slow.
But according to Igor, foreign investors poured more than $242,4 million into Brazilian assets in the first three months of 2016. Siderurgica Nacional SA also known as CSN, and that company’s shareholders have been the biggest winners in the stock market so far in 2016, according to Cornelsen.