Cash flow is one of the most important characteristics of a healthy organization. When you compare national debt levels, you will find that Brasil’s is quite low. Retired Brazil banker Igor Cornelsen believes this is a good reason for investing in the country. Learn more about Igor Cornelsen: https://igorcornelsen.wordpress.com/
“Low Debt Brasil”
If you want a more conservative, risk-averse investment, then national sovereign debt is ideal. After 2008, PIIGS debt has been delivering higher returns. While, this might look attractive for the sake of profits, you must remember that there is more risk involved.
Nations with very high debt to GDP ratios, like Greece, owe a lot of money compared to how much they earn, each year. According to the USDebtClock, the Greek debt-to-GDP ratio is about 203% – meaning that the “money they owe is twice as much as what their assets are worth.” Read more: Adicione uma descrição a este tópico
While the returns look very attractive, the problem is that their cash flow is at dangerously low levels. With high debt, Greece cannot invest in its infrastructure. It has a very difficult time, increasing its income. It also spends a high proportion of its income on “debt servicing.”
How does Brasil compare? Fortunately, Brasil’s debt is quite low compared to other nations. The Brasil debt-to-GDP ratio is a mere 29%. Therefore, Brasil can devote more of its income to actually improving its nation’s productivity.
During 2016, several deals were made between Brasil and China. Just like Brasil, China has surplus cash to spend. Many of these deals are aimed at improving Brasil infrastructure.
If you want an investment that can pay healthy dividends for the long-term, than Brasil is ideal. It has room to grow. Ex-Brasil banker Igor Cornelsen understands which assets are attractive investments. He can help you prudently select the best ones for your portfolio.
Learn more about Igor Cornelsen: