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Back in the 1980s Brazil was defaulting on its debt and the Brazilian currency the real was worth almost nothing.  Now 30 years later worn buffet is holding large amounts of Brazilian real.  Brazil is enjoying this boost to their economy thanks to having a country so full of natural resources.  Brazil is one of the richest nations in terms of commodities and natural resources.  Brazil is the largest South American country and is also the world’s largest producer of iron ore coffee and sugar.  Brazil produces so much sugar in fact a while we pay $127 per barrel of oil in the United States result produces sugar-based ethanol to decrease its usage of oil.  Brazil is also a major exporter of soybeans pork and beef.  So as commodity prices continue to rise throughout the world’s Brazil continues to profit heavily.
To further add to the picture, Brazil just discovered the largest oilfield in the Western Hemisphere since the 1970s.  Petrobras, the state owned oil company of Brazil will profit heavily from this discovery in the future.  Money is flowing into Brazil from literally all over the world.  China Asia and Europe are huge customers of Brazil in fact despite an ailing US economy Brazil’s economy expanded 6.6% at the end of last year.

Brazil just received the coveted investment grade rating from S. and P. last month.  This rating, has allowed at large amounts of investment institutional cash to flow into the Brazilian markets.  Also, it is rumored that Brazil may receive yet another investment grade rating coming from either Moody’s or Fitch in the coming months.  When that happens you can expect another tidal wave of money to flow into the Brazilian stocks, real estate, bonds and other investment vehicles.

The Brazilian real has climbed 22% over the last 12 months more than any of the other top 16 currencies of the globe.  The Brazilian government is doing everything it can to ensure the country will continue in its prosperity.  On May 12 at the Brazilian president Lula announced tax cuts for 25 industries to further stimulate growth.  The government also plans to give billions of dollars in loans to help ensure exports continue despite the rise of the real.
The country continues to invest heavily into research and development.  Many believe this will allow Brazil to be prosperous even after the commodity boom years.  For example, over 40 billion reals (US 24.3 million) will be spent on technology by 2010.  The majority of this will be technology developments into core sectors of the Brazilian economy: biotechnology, buy a diesel, agribusiness, oil, gas.

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