Foreign investment is key to asset allocation.
Lately, I’ve researched a lot about investing abroad. I read several websites, forums, and blogs. I had also read interviews with some fucking managers like Peter Lynch and Luis Stuhlberg about this, I will summarize here on all this.
With bovespa walking sideways and collapsing, with Brazilian Fixed Income paying high interest (is it lunch free? No), real estate melting, high vacancy, and low quotas – all this for some investors can make you think? Am I leaving the place? Difficult to answer.
In bovespa that must have at most 30 companies that can be a partner, the scenario is bleak in the short term, with the government only increasing taxes and raping the legal entities, the country is going badly, deinstitutionalization and retail agonizing just to start in 2016 Even Itaú’s profits will fall between 10-20% according to the president of the bank (I will not link anything look on google), unemployment in high and the average Brazilian indebted, this year will be fucking, the PT slowly dies and takes the Brazil together.
But let’s talk about the outside that is a post. A friend of mine, who knows little of the things, came to tell me about a fund of the Safra that yielded 50% in the last 12 months, I was curious, I went there to look and I found, and it was true, some 4 trash funds with very high rates (if you invest By bank only lament) were giving this very high profitability! But how? The answer is simple: Dollar.
All the damn bottoms were set in dollars. In 2015 the R$ REAL weakened, did not mean that the dollar appreciated, only that the real melted. And if REAL has melted and you only invest in real, everything has melted, and you have become poorer to the world by 50%, cry or not this is the truth.
Well, then how not to get poor for the world? The world is the world, it is not the pity that you call Brazil, WORLD, WORLD! How can you here do not to impoverish the world? Investing overseas.
What is the simplest way: buy the dollar and save. This is not an investment and it does not pay anything, but it’s for you to travel or pay for things in dollars, or to pay for a course abroad or to send your son there one day. Saving a dollar on the mattress in 2015 was better than ANY REAL INVESTMENT, simple.
Second most simple way: Buy ETF of the SP500 that sells in bovespa, the IVVB11 of Ishares, has good liquidity, is cheap (80 reais – but only buys in minimum lots of 10) and is there for you to sell any business day you want And redeem.
This may be your dollar hedge for the actual leftover times, and it still yields about 6% per year over the last 200 years (NYSE average) and you’ll be a partner of fucking companies like apple, facebook, google, jp morgan And another 500 of the index (which in the long run only 2% of managers beat – more than 20 years).
This ETF pays 2.5% pa of US dividends, but here in Brazil it does not pay anything – and I have doubts about how this dividend money could increase the value of its share here (I already called BlackRocks but no one knows how to explain, And they gave me a link to study the ETF and did not say anything about it there), anyway I think they do not get their hands on that money, it is not possible (even it is).
Plus = Buying this here will lessen the RISK of your wallet (make sure you know what RISK means in finance) – basically RISK is a statistical measure that talks about the standard deviation of your portfolio, the greater the deviation, More risk, smaller, smaller and to reduce systemic risk, it is necessary to diversify between different classes of financial assets (WHAT INCLUDES THESE ASSETS ABROAD). This form is quiet for everyone who saves something and has access to a home broker.
Third, more laborious – Open an account with a brokerage abroad and set up a stock portfolio, fixed income and REIT (real estate fund) there. Not the only USA, but also Europe, East, and Oceania.
Advantages: protect their assets away from the communists who ruled the country, the money is yours, states that he is sending pro abroad and send YOURSELF! I consider here that this is not available to Brazilian investors (majority) at least at the beginning, it also has the difficulty of English (if you are an adult and do not know English TOMA VERGONHA NESSA CARA! Has a trillion mobile sites and apps for you Learn English, then stop being illiterate in the world and learn this soon your stuff).
You can also open a bank account in the US and go out there buying everything, you do not have to kill yourself to buy and study stock there, the market is so rich that you buy ETF from all over the world, even from Switzerland, Hong Kong Or Australia. “I want to study and do not want to buy ETF, ETF just not worth it in Brazil! US worth YES! It has REIT ETFs, stocks, fixed income, debentures from private companies (which pay in dollars or euros) and everything you imagine.
Brokers Abroad: Being succinct, the simplest is DriveWealth that you can even put money into your account via BitCoin, open account for Brazilian and have a site in Portuguese.
Another fucking bank that I found was the EURO PACIFIC BANK, is an investment bank in the Caribbean, in the country of San Vicent and Grenadines, of an American libertarian (if you do not know what libertarianism, if you inform) you can open and transfer Funds all over the internet, and that bank does not use FRACTIONAL RESERVATIONS (lying money) – then it’s harder for it to break – and that bank will NEVER say that YOU own the account. NEVER! EURO PACIFIC BANK uses the platform and the home broker of SAXO BANK which is a Danish bank that trades assets worldwide, it is mega fuck that SAXO BANK and its home monster broker.
Another more or less simple that I also enjoyed all the fees and still gives you a bank account abroad is the Charles Schwab, who have several ETFs of their own that you do not even pay brokerage.
Which one did I like the most? Interactive Brokers, global reach, home broker fodão, ridiculous rates to buy stocks (brokerages less than 1 dollar) – disadvantage – you need $ 10,000 to open your account there, then take advantage of that brokerage is cheap and even gives Some 80 orders to mess up, buy several ETFs for your wallet, a 10 REITS and a 10 BONDS (seriously the brokerages are ridiculous). You can register on the Interactive Brokers website and get a little money to try their home broker, it’s really cool and then buys stocks in Australia, Switzerland, Singapore, England, USA and so on.
To study all this the MorningStar website and google finance that has the link here on the blog is enough. I’m joining those $ 10k to open my account there and then start posting very interesting things, but meanwhile, I’m going to stay in that cheap talk, I already put my wallet there and I’m very excited to contribute outside of Bostil and earn dollar dividends, Pound sterling, and Swiss franc.
By investing abroad you kill several rabbits with your staff:
It decreases your risk.
It hedges in several currencies around the world.
It allocates its overseas assets away from Brazil’s junk governments.
You can travel and spend there without paying tax.
He invests in fucking companies.
Invest in fucking REIT.
Invest in BONDS that pay interest in dollar or other currency.
One day, who knows, he can move to Bostil again.
It will have what we all want in life: MORE FREEDOM.
Study the subject, think about it.