Published: July 17, 2009
The
correct answer is
(B.) Brazil.Several weeks
ago, Brazil President Luiz Inacio
Lula Da Silva unveiled plans to loan
$10 billion to the International
Monetary Fund. You can bet most
Brazilians are savoring this
dramatic reversal of fortune -- back
in August 2002, the country was
forced to accept a $30 billion
emergency line of credit from the
IMF. After years of adhering to
strict conditions, Brazil's GDP
growth is expected to be about +4.1%
from 2011-2013, and Brazil will soon
be shaping the rules rather than
bowing to them. Of course, that's
easy to do when you're sitting on
$200 billion in foreign exchange
reserves.
Just seven years after receiving
that IMF bailout, a buoyant Brazil
is now helping to keep others
afloat. And as you might expect,
this stunning economic makeover
coincided with a powerful multi-year
advance in the nation's Bovespa
stock index. In fact, the country is
the gem of Latin America.
Why? Brazil has been blessed with a
bountiful supply of commodities.
This agricultural powerhouse also
produces 25% of the world's sugar
supply, 80% of its orange juice, and
mountains of coffee and soybeans. As
you might expect in the lush rain
forests of the Amazon, wood pulp and
lumber are also plentiful. Roaming
the pastoral regions are 170 million
head of cattle -- easily the world's
largest commercial herd. Elsewhere,
vacationers frolic in Rio de
Janeiro. And just off the coast, a
series of game-changing oil
discoveries has recently been made.
Last year, Brazil exported nearly
$200 billion worth of goods
overseas. The agricultural harvest
alone netted $60 billion in trade
surplus. And 2009 is shaping up to
be even better. Brazil has a young,
well-educated workforce and one of
the highest per-capita income rates
in Latin America. With annual GDP
approaching $2 trillion, it boasts
the world's ninth largest economy,
and its middle class has swelled to
over 20 million people.
All of this means there are plenty
of attractive investment
opportunities outside of Brazil's
well-known commodity plays. That's
why StreetAuthority editor Nathan
Slaughter waded through a jungle of
opportunities to find profitable,
wide-moat leaders in the retail,
banking, utilities and telecom
sectors, among others. In the latest
issue of the Half-Priced Stocks
newsletter, Nathan presents nine top
picks, all of which have
price-appreciation potential of at
least 20%, and offers in-depth
profiles of two of his favorites. To
learn the names of these stocks, and
to learn more about the
Half-Priced Stocks newsletter,
please visit this link.
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