Brazil Has Become a Much Better Place than the US to Make Money

Brazil currency, the real According to Brazilian daily newspaper O Estado de S. Paulo, the return on net assets for companies listed in the São Paulo Stock Exchange (Bovespa) was 16.02% last year,  The percentage was greater than the one recorded in the United States, which was 14%.

In the financial sector, the return was almost twice as high: 19.6% for Brazil and 11.5% for the United States.

The data were culled from a survey conducted by financial information company Economática. The most profitable segment, as reported by the newspaper, was that of the steel and metals industry, at 31.3%.

The share of people investing in the Brazilian stock market increased from 9.7% in 1994 to 24.6% in 2006. Last year, until early november, considering the daily volume of stock purchases and sales volume in the São Paulo Stock Exchange (Bovespa), natural people investors represented 23.1% of the total.

Data disclosed by the Bovespa show that 310,625 individual investors have bought shares, totaling 84.59 billion reais (US$ 47.6 billion). A large share of individual investors is in the cities of São Paulo (48.22% of the total) and Rio de Janeiro (27.48%).

Men are the majority (77.94%) among the investors, whereas women account for only 22.06%. However, the trend is for the female participation in the stock market to increase. In 2002, women had a share of just 17.63%.

One of those investors is journalist Maira de Figueiredo Cunha da Costa, who decided two years ago to risk "a little cash" in the stock fund of the Brazilian Development Bank (BNDES).

The Bovespa Brazil Index Papers ("Papéis índice Brasil Bovespa – PIBB) investment fund is comprised of bonds of the 50 most traded companies on Bovespa. The first version of the fund was launched in 2004, and the second in 2005.

The fund used to be negotiated in applications of a minimum of 300 reais (US$ 169) for natural people. The investors would also have a repurchase guarantee from the BNDES one year after the application, for disbursements of up to 25,000 reais (US$ 14,000).

To Maira da Costa, the experience was "wonderful", as it earned her an appreciation of more than 70% in the price of the stock purchased. "I wish I had invested more."

The future prospect of the launch of a new PIBB by the BNDES makes Maira da Costa enthused. "I will invest the maximum amount allowed, and the maximum amount that I am able to invest. I do not have much money to invest, but I would even be willing to assume a higher risk and move away from the more conservative positions, should a new fund be launched," she claimed.

Tags:

You May Also Like

License to Kill

With the appointment by President Luiz Inácio Lula da Silva of Mr. Luiz Eduardo ...

The Unique "Brazilianness" of Brazilians

The rampant and gross indifference to the separation of the various populations of Latin ...

Chavez Says in Brazil, that Bush Doctrine Can Destroy World

Venezuelan President Hugo Chavez was warmly received at the 2005 edition of the World ...

Brazil Inquiry on Vote-Buying Finds Major Role for Ex-Chief of Staff Josí© Dirceu

Seven of the 61 pages comprising the preliminary, combined report submitted by Brazil’s joint ...

Bank of Brazil Grows 93%, Posts US$ 1.3 Billion First Quarter Net Profit

Banco do Brasil (Bank of Brazil) posted net profit of 2.3 billion reais (US$ ...

Brazil Ready to Fill Any Void Selling Farm Products Worldwide

Brazil, in spite of the international financial crisis, should maintain agribusiness exports to traditional ...

Brazil Becomes a Leader in the AIDS War

The city of Olinda, Pernambuco, in Northeastern Brazil, will host the First Brazilian Congress ...

The Official Word on Vietnam President’s Visit to Brazil

The Brazilian and the Vietnam governments have issued a joint communiqué at the end ...

State Top Authorities in Brazil Headed Gang Who Diverted US$ 32 Million

The president of the Rondônia State Supreme Court, Sebastião Teixeira Chaves and the president ...

Brazil’s Opposition Candidate Tops Lula in the Polls

Latin American stocks were mixed, with Brazilian shares garnering some support from continued expectations ...