Wednesday, July 21, 2010

Building A Portfolio Around Brazil's Building

The next six years are going to busy ones for Brazil. The World Cup is coming in 2014, with the Olympics following two years after. Suffice to say, like virtually every country that has hosted one of those events (let alone both in succession), Brazil has a great deal of infrastructure to build in the intervening years. Brazil is also a large country with a sizable population and a growing economy; all of which takes money to support in its own right.  


If You Build It, They Will ComeIn order to support the demands of these two major sporting events, Brazil is looking at wide-ranging projects including upgrading roads and power grids, building hotels, improving airports, and generally just adding "more" to country. Even granting that the sporting events will be concentrated in or near major cities, there will need to be infrastructure stretching into the hinterlands to bring in supplies. All told, the bill just for Rio's Olympics is looking like it will be at least $14 billion.  

For the full piece, please go to:
http://stocks.investopedia.com/stock-analysis/2010/Building-a-Portfolio-Around-Brazils-Building-BRXX-VIV-UGP-ERJ-VALE-ITUB-PBR0721.aspx

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