lorddarley

The Vicious Cycle of a Falling Dollar

As an investor, I have trouble making a case for broad equity commitments to the US. It's a great country, but the mandates for its aging and immigrant populations are not affordable, and politicians will resort to currency manipulation to postpone the bad news. The government debt structure essentially makes it impossible for government to overhaul aging infrastructure, and I don't see the terms to finance such projects being attractive to private capital.

Brazil seems the best place to invest at present: (1) resources, (2) a young population (3) decreasing government debt as a percentage of GDP, and (4) relative stability politically. With an election coming up, look for "Lula" to prime the pump for Brazilian consumers so that his favored successor can take over. BRF, the recent ETF which is made up of consumer-based Brazilian stocks, looks like a better candidate for investment dollars than what I see in the US.

Bom Dia !