Invest in Brazil's Stock Market

With US stock market underperforming the global markets over the last few years, it is a good idea to diversify your investment internationally. Emerging markets have been turning in impressive returns over the recent past, especially the BRIC countries (Brazil, Russia, Indian and China). While they are not immune to US economic woes, their fundamentals remain strong into the foreseeable future. Brazil’s economy is booming and here is how you can easily take advantage.

Buy Brazil stock market tracking ETFs.
For instance, iShares MSCI Brazil (EWZ) offers an easy way to participate. You can buy and sell them just like you would any other stock.

Buy mutual funds focused on Brazil companies.
For instance Fidelity’s Latin American Fund (FLATX).

Buy Brazil stocks.
If you are able to research companies listed in other markets, you have couple of ways to buy their stocks. You can either open trading account in the market of your choice (your broker might support this already (Tip: pay attention to transaction fees) or you can look for ADRs of foreign companies which are listed in NYSE (such as PBR, BTM).

Buy US stocks that are diversified internationally.
There is nothing wrong with sticking with the US companies that you know and trust but keep in mind that companies that have business abroad would likely give you better return on investment due to better growth prospects and favorable currency exchange rates. Think of Coke, Pepsi, Procter & Gamble, Phillip Morris etc.

Tips & Warnings

• Evaluate risks vs. rewards. Any investment has an element of risk. Emerging markets have greater returns and hence greater risks but the fundamentals continue to be in their favor.