Brazil: Not Just Coffee

The leading coffee producer by volume in the world is Brazil. But, Brazil has gotten its economic act together, encouraged investment, developed its technological base, and found oil, lots of oil. Estimates of deep sea oil finds put Brazil’s oil reserves at or above those of Saudi Arabia. The country has well-developed agricultural, mining, manufacturing, and service sectors. Brazil’s economy dominates of all other South American countries and it is expanding into world markets. Real estate prices have risen along with general prosperity and the middle class is growing and becoming richer. Take a flight to Rio de Janeiro and buy a condo. Watch while your property values rise. Set up a bank account in Brazil and watch your savings grow in Brazilian Reals, the local currency. Or simply buy stock in companies like Caterpillar, Procter & Gamble, 3M, or Marriott who already do business there. These could be three good offshore investment ideas.

Colombia: Better Coffee and Now Safer Too

Colombia is emerging from a decades-long civil war and making use of its rich resource base, talent, and free trade connections. The nation has free trade agreements with Canada, Chile, Mexico, Switzerland, the EU, Venezuela, South Korea, Turkey, Japan, and Israel. It belongs to the Andean Community and Caribbean Community trade organizations. Colombia is historically the producer of lots of high quality Arabica coffee bearing the Juan Valdez seal of approval of the Colombian Coffee Growers association. Fly to Bogotá, Cartagena, or a city in the coffee growing district, like Manizales and buy property. Like an investment in Rio your real estate investment may well prosper. Likewise, foreigners can do business in Colombia. Or you can invest in oil companies, mining companies, or coffee exporters who do business there and count your dividends. Bank your profits in Colombian pesos and get an extra kick as the peso has outperformed all other currencies versus the dollar in 2012. These could be three good offshore investment ideas. If value investing for long term profits is your thing, think of Colombia.

Panama and Passage from Pacific to Atlantic

The Panama Canal Expansion will soon funnel much more trade through the old Panama Canal. The country never had a recession after 2008. When things were most bleak elsewhere Panama had a 3.5% growth rate. Buy property along the new metro line, rent to businesses, and bank you rent checks in dollars. Set up an offshore service center using skilled, English proficient workers at “offshore” rates. Or, notice the North American companies that do business here and invest in them. Again, these could be three good offshore investment ideas. In fact, if you are investing for retirement you might just consider a “pensionado” visa and retire to this tropical paradise.

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Regional Differences

Interest rates are low everywhere but jobs especially good paying jobs are not always evenly dispersed across the nation. Salaries are typically higher in the North and Northeast than in the South and Southeast. Even with low interest rates buyers need to qualify for their mortgages. Those who would like to invest in home builders should look at who operates in which region of the country before buying stock.

What Do the Numbers Mean?

New home sales are counted when a couple signs a contract to build the home or purchase a newly built home. This contrasts with the tabulation of closings on older homes. The newly released figures are from two months ago. This was before the Fed announced its bond buying economic stimulus program. Perhaps the time to invest in home builders is now, before new numbers come out and prices go up. Already there has been an increase of more than twenty-five percent in new home sales since a year ago. As home builders have cut back in the last couple of years there is also a relative scarcity of new homes for sale. As prospects for a better market evolve sales may well go substantially higher making it smart to invest in home builders today and not after a housing boom is apparent.

Real Estate Investment

If you invest in home builders is that how to start investing in real estate? One can also consider flipping properties as prices rise or investing in the rental market. Real estate management can garner profits for the smart investor. Then there are lease options as well. A smart investor can make money in mobile homes while the housing market grows. Land trusts and real estate limited partnerships are also potential investment opportunities. Learning how to invest in real estate as the market turns up may be profitable and you will not only invest in home builders but consider the whole range of real estate investment options.

As always with these articles we are not suggesting that one invest in any specific home builder or that one invest in home builders at all. The point is to be aware of investment opportunities as the recession lightens and find profitable places to invest your hard earned money.

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Expected Business Growth and Profits

So, your friend has been working extra hours training in new help on his job and is too exhausted for Sunday morning basketball. Instead of complaining about it why not ask him what is going on at work? Maybe the company is expanding, adding people, and expecting more business. Your next stop should be one of the online finance sections where you will look up the company that your friend works for. What is it selling for and what is its price to earnings ratio? Maybe, while your friend is raking in overtime pay, you can cash in when his company’s stock pops up with a good earnings report next quarter. Today’s value investing could be quite profitable for those who scout out underpriced stocks with potential.

What Do People Do with Their Money?

When folks are unemployed or only working part time they don’t spend like they do when times are good. So, when 227,000 new folks are getting a pay check, where are they spending their money? Think of where you would go with your first paycheck in a year or two. Kids clothes and shoes, a nice meal in a restaurant, a new suit or dress, a trip to the home improvement store, and long needed repairs for your car might be high on the list. Later on a weekend for two in a downtown hotel, a new car, a real vacation, and luxury items could be on the list as well. Think about the dismal US housing market and how rents have gone up because no one has the cash or credit to buy a house or condo. Then think about large home builders, construction supply companies, and all of those folks who make and sell carpeting, draperies, and kitchen appliances. As rising tide often does raise all ships and stock profits from increasing employment numbers can come from where the newly employed will spend their money. A couple of years ago it was a valid question to ask, why invest in American real estate . Now the question is, why not?

How Good Can It Get?

The unemployment rate fell for six months straight through January. Despite adding a quarter of a million jobs to the economy the rate did not fall this last month because half a million folks found hope and started looking for work again. The Greek debt dilemma seems to be fixing itself. It Europe does get its house in order the threat of a global downturn will be alleviated. The US Federal Reserve seems to have managed the money supply issue well, injecting needed liquidity into the monetary system while avoiding excessing inflation. The iffy world economy has kept energy prices from rising too fast. The economic recovery in the US is broad based and includes services as well as mining and manufacturing, which hopefully implies a continued recovery. Also, the high number of government layoffs from last year are largely a thing of the past. That said, the smart investor will be wise to engage in a fundamental analysis of stocks in search of stock profits from rising employment numbers

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