Brazil is in a perfect storm right now. It has a political crisis, an economic crisis, and a crisis of confidence. It is as systemic as a crisis can get.

 

On the other hand, this same storm that descending on Brazil right now is a boon in the eye of foreign investors who see changes as the best way to pull the country out of its doldrums.

 

This crisis’ scenario had as consequence: high interest rates and weaker currency and for foreign investor this is the perfect combination to invest, Brazil economy become cheap and attractive.

 

The country’s interest rate is appealing to speculative financial operations, according to experts. To take advantage of the high interest rate, some investors are borrowing money in countries with low interest rates and leverage resources in securities of Brazilian debt.

 

Furthermore, investors that do not have rush to wait the economy make a shift are coming to Brazil. Economy depression added with political instability is causing cash flow issues and financial difficulties in good local companies. So, there are a lot of deals opportunities to make a strategic investment in Brazil or even buy local competitors.

 

With this in mind, it is worth to define why you are interested in the first place. If you are or want to be connected to Brazil on a long-term basis, it would make sense.

 

However, if you are sensitive to risk, your interest gain in Reals may be eroded by a further deterioration in the Real if you plan to convert within the next three years.

 

It is also important to mention that, from Brazil standpoint, a new change, a complete paradigm shift, will be very positive for an economy that has been in severe recession. The reversal of the imbalances as a result of political stability will be very positive for the story.

 

In summary, even with a catastrophic crises’ scenario, Brazil can be a good opportunity for investors that do not have hurry to wait Brazil get back on track.