Brazil might be the right country to invest your money in 2014 according to one leading hedge fund organization in the world. Gareth Henry, a $63 billion executive of Fortress Investment Group, claims that with its election in just a few couples of weeks, Brazil has come up with the most remarkable trading opportunities in this year. Henry said this at the conference at Alpha Hedge West that took place on Monday in San Francisco.
If you view the equity market, both the interest rates the real have traded fantastically in this year, and this is likely to continue after the elections are done. Gareth Henry was echoing statements made by Mike Novogratz, an executive at Fortress in May. According to Novogratz, this bet is obvious. The probability of Dilma Rousseff winning the election is very minimal, and this could mean a potential new leadership. If that is the case, then Brazil will experience a significant rally regarding assets.
Gareth Henry also states that Scotland and Japan are also good countries to invest in this year. The most significant and paramount trades last year came from Japan. As Abenomics keep getting stronger and stronger, Japan will continue to experience good trades even this year. Abenomics are the government’s economic stimulus programs which are controlled by the Prime Minister Shinzo Abe. On the other hand, the uproar over the latest independence vote that failed in Scotland created some excellent trading opportunities. Gareth Henry claims that initially, this was a non-event but later it turned out to have a considerable amount of uncertainty.
Novogratz states that investor pessimism on Brazil is very high at any time because it has been a hard place to make money. This typical view is allowing for assets to be relatively cheap. Novogratz says that the Brazilian economy will recover if President Rousseff losses this election because the other two candidates are more economically conservatives. He recommends buying long-term bonds, currency, and local equity. For the next 12 months, we should concentrate on what is taking place in the world concerning political and geopolitical change as Gareth Henry puts it.