Caroline Ritchie: Brazil has much to sing about

Once, a Girl From Ipanema used to saunter up and down the sands of Rio de Janeiro capturing the mind of one songwriter and creating many a romantic vision for listeners the world over.
She actually existed, back then in 1962, lived on Montenegro St, worked in the city and bought cigarettes at the songwriter's favourite bar.
At 15 years old, one wonders if now, at 64, she might have ridden Brazil's booming economy, forged a successful career as a hedge fund manager, and returned to the beach a wealthy woman.
Brazil, at the moment, is arguably one of the most attractive emerging economies.
Money is literally pouring in from global investors; GDP is strong but not overly inflated at 7.5 per cent and the BOVESPA, (the Brazilian Stock Exchange), has never been busier and is now the fourth largest exchange globally by value.
Brazil is now the world's eighth-largest economy and despite the previous boom and bust in the 1990s (think the Asian crisis and a devalued Brazilian Real); many believe the existing situation to be a sunny and sustainable one.
Part of the growth lies in the fairly open policy with which the country has embraced hedge funds and private-equity organisations. The Brazilian approach to these big and important market players is more entrepreneurial and yet more regulated than other major markets and the benefits are showing.
Transparency is one of the key factors through which the country is having success where others have failed. Simply this means that everyone can see what the big boys are doing. Daily and monthly positions must be made available for everyone to see. It's more difficult to do a Madoff in Brazil than most people might think.
Far from being the "Investment Riviera" of the South Americas (a sunny place for shady investors), Brazil is forging a reputation as an emerging market powerhouse again, but this time with a cleaner rap sheet and a keener sense of the sustainably ambitious.
Brazil as a national brand is associated with many things: iron ore, ethanol, coffee and orange juice. The flourishing modern economy that used to be associated only with nuts, beauty queens and carnivals has come a long way since Antonio Jobim composed his dreamy lyrics in the 1960s. And it seems that the future is just as rosy as his prose.
Caroline Ritchie is an NZX adviser for Forsyth Barr in Napier and holds an NZX Diploma, BCom and BSc. For sharemarket advice contact her on (06) 835 3111 or caroline.ritchie@forbar.co.nz
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