Mobius: A Lot to Like in Brazil
Templeton Asset Management’s Mark Mobius is bullish on Brazil, saying a number of factors are making the Latin American giant an attractive spot for investors to look.
“The country’s motto ‘Ordem e Progresso’ (Order and Progress) is finally being realized after an economic history that hasn’t always been very orderly,” Mobius writes on his company blog (tip of the cap to MoneyShow.com for highlighting the piece). “Inflation, with percentages running into the thousands in the early 1990s, has recently been at about 6%. In 2011, economic growth was estimated to be approximately 3% and unemployment at the end of the year was about 5%. There is even a labor shortage in many sectors. Foreign reserves surged to $348 billion in the third quarter of 2011 and the currency, the Real, has strengthened versus the U.S. dollar since 2002.”
Mobius says he recently visited several of his Brazil holdings’ facilities, and came away impressed with companies from the financial sector, car rental industry, and beverage industry. “Overall, I was very pleased with the meetings with executives from these companies and banks. I look forward to my next visit, and we continue to keep our long-term eye on Brazil, one of the world’s most exciting markets,” he says.