With inflation on the rise, financial problems that don't seem to be abating anytime soon and, most recently, the elections. It is surrounded by a tropical forest in Brazil and is home to some of the most beautiful landscapes in the world. The approach of the election period is already causing some anxiety and stress to others, but the uncertainties seem to be even greater in 2022.With the Selic rising 6% and projected to reach 8% in the near future, there is a lot of speculation about which would be a good company to invest in. Even the most experienced and professional YouTubers and Instagrammers avoid posting too many videos as it is based on value.
What will the elections mean and are they already shaping our lives? When there is the possibility of political change, it is common for any investment to have a better or worse effect than before. In this election, we have a real problem.
The growing resistance to the current Bolsonaro is aggravated by the fact that his predecessor, Lula, despite having a good chance of victory, is not feeding the hearts of the majority of the country again. Furthermore, there are many parties on both sides who are not willing to accept a situation that does not meet their wishes, which leads to political conflicts.
Any and all uncertainty in the country causes volatility in the economy, and this huge crisis has made investors more cautious in their decisions. However, this does not mean that there are no good investment opportunities.
What are some of the opportunities you have today? There is a perception among some investors that interest rates are a good idea in these times. It is true that Selic is forecast to reach 8.5% by the end of 2022, but it is necessary to remember that the growth rate for 2021 is already forecast to reach 8.35%. even the wrong one.
Make no mistake. Although volatile fixed income securities have a shorter duration, they are still volatile securities that have investment advantages even in this scenario. As a generalization, we can say:
Stocks – by investing in emerging market companies, investors know that when the storm passes, however long it takes, their money will come. FIIs – the share price tends to depreciate when the Selic rises, indicating that it is a good long-term investment. Options – Options allow investors to make money even when markets fall. American ETFs – While Brazilian ETFs are more volatile and do not finance separately, those trusted by the United States limit their returns and have an unlimited number of options. .
Short and Long Term Trends for 2021 If you are thinking about the short term, there is no other option than to continue investing in fixed income. The best short-term investment may be in the right options, but they must be invested slowly and wisely. As mentioned earlier, they allow you to make money on drops, in the right amount.
In most cases, a balanced portfolio will lead to better decision making, as long as the variety in play is kept to a minimum. For example, the combination of shares and FIIs produces better results in Brazil. With the addition of ETFs, part of your portfolio is no longer subject to the risk widely publicized in Brazil.
Road to the end of 2022 Brazil and its traditional investors already face an ever-changing hurdle as the economy continues to grow. Even children have had the experience of playing an easily accessible game. Therefore, the best approach is to have a long-term insurance policy and, after gaining experience with that, work on short-term negotiations.