Let´s Make Some Money
With Brazil currently on an upswing, there is no time like the present to talk about generating profits. For this panel session, four seasoned investment professionals were asked to opine on their money-making strategies, given the current positive environment. Coming out of the crisis, the ETF remains a natural choice for macro strategies with an emphasis on liquidity. However, with the Brazilian economy going through a huge transition period, a lot of value is to be found through active management of equities.
The rise of the Brazilian middle class through the mass movement of individuals from Classes D and E to Class C, has also created a tremendous opportunity to grow the young and relatively small local credit market. Individuals with increased accesibility to credit are now moving through the stages of consumption, beginning with basic goods, followed by housing and lastly with services. There exists many equity ideas as the emerging Class C is currently in the second stage but as the middle class shifts its focus towards services, there are limited traditional opportunities as there are not that many players in each of the three main service categories (health, education, entertainment). Investors may have to turn to private equity.