Bullish on
Mexican and Brazilian markets:--By
Shan Saeed
BRAZIL AND
MEXICO: THE NEW GROWTH TRAJECTORY IN THE EMERGING MARKETS.
I was yearning for many years to share
my strategic insights on these markets. Here I am why I think highly about
Brazil and Mexico economies for sustainable investments. I wanted to write this piece about these
giant nations of the South American continent and how they have progressed in
the last 20 years is simply remarkable. The reasons are simple: Investors
should consider Mexican and Brazilian markets for their strategic
investments. United States may be the
cleanest of the dirtiest shirts among major markets these days but investors
should keep an eye on Mexico and Brazil since both these countries have great
potential. Brazalian and Mexican governments have used their natural resources
very strategically for the benefit of their investors and entrepreneurs.
Biofuel, Sugar, Oil, Copper, iron ore, Coffee, Soyabean, Cotton, Silver, Fruits, Vegetables have helped these countries to maintain a healthy export
oriented growth. Agriculture is the best investment for the next 5-10 years.
These countries have a strong and attractive balance sheets, higher growth
rates, and more attractive exportable natural resources and higher interest
rates, as well. America is the cleanest dirty shirt in terms of financial
markets. I see a lot of blood in the American and European financial markets
going forward till 2015. Printing money will not solve the problem.
Quantitative easing is just like fantasy money with no legs. QE will lead to
inflation and lower the standard of living of many people in the advance
economies. The Federal Reserve just released the
results of a three-year study on household wealth, and the results are shocking
...As of 2010, the typical U.S. household had the same net worth they had back
in 1992.That’s right. Even Washington admits that the recent financial crisis has already erased a staggering 39% of the average American’s wealth. Think about it: 20 years of your hard work down the drain! But what’s worse is that this wealth destruction is just a foreshadowing of what’s about to happen ...Washington and Wall Street have now pushed america into the largest financial bubble ever. And when this bubble bursts it will dwarf every other financial crisis in American history.
IPO NEW MARKET
IS IN ASIA: NEW YORK IS FAR BEHIND OR DEAD.
It’s where money is moving
towards out of Euro land and out of all the risky peripheral countries. All big
investors are moving their funds in Mexico, Brazil, Chile, Peru, Singapore,
China, Malaysia, Thailand, Philippines, Turkey, Mongolia, Vietnam, Kazakhstan,
Indonesia and South Korea.
The United States carries lower
comparative debt burdens than European countries, is home to the world's
reserve currency and has stable property rights. Still, investors shouldn't
take such traits for granted. It’s not ultimately and inevitably secure in this
position. More and more of the world's top initial public offerings are taking
place in emerging markets these days. Three of the top-10 initial public
offerings in the last three months took place in Brazil, Malaysia and Mexico as
reported by the Financial Times. The Facebook IPO grabbed headlines due to its
sheer size at raising an initial $16 billion. Europe, meanwhile, hasn't been a
good place for companies to go public lately.
Market conditions make these
deals very challenging, and in many cases it seems that issuers and their
advisers have simply not recognized the degree of price sensitivity. More
market practitioners need to be willing to accept that several elements of
European IPO market practice remain flawed.
Disclaimer: This is just a
research piece and not an investment advice. All financial transactions carry a
RISK.
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