Reason #1 - Protection against risks related to Brazil and its economy
As for the risk protection related to Brazil, investing abroad prevents 100% of your equity from being associated with the Brazilian economy.
If your salary or company income derives from Brazil (which happens to most Brazilians), the need to diversify is even greater because even in your earnings, you have full exposure to Brazil.
Although Brazil is a large global economy, our country has a low potential for economic growth (2% annual growth projected in the long term) and lacks companies in the high-technology sector.
As Brazil has its most dynamic sector in agribusiness and mining, the Brazilian economy suffers from cycles of growth and decline as the international prices of agribusiness and mining products vary.
Another worrying aspect is the increase in political polarization in the country, which adds uncertainty regarding economic and social crises. Finally, the high level of public sector indebtedness - above that of other emerging countries - concerns the sustainability of the Brazilian economy in the long term.
Reason #2 - Access to international assets with greater return potential
Brazil does not have companies traded on stock exchanges that are among the leaders in new global technologies.
For example, our country does not have leading national companies in electric cars, artificial intelligence, renewable energies, robotization, personalized pharmaceutical treatments, social networks, and video streaming, among other current technological trends.
Leading companies in these new sectors of the economy are mostly headquartered in the US, China, the European Union, Japan, and South Korea. Think, for example, of the companies Tesla, Li Auto, Google, Microsoft, Siemens, ASML, Netflix, and Tencent (owner of Tiktok), among other global giants.
To participate in the generation of wealth in these new sectors of the economy, Brazilians must invest abroad.
Reason #3 - Low cost and easy access to investment abroad today
Today, all that has changed. It became easy to invest abroad, being possible to open an account in 1 business day and with your R.G. and CPF only (no need for English translations). It is already possible to start investing abroad from US$1, and most brokers do not charge anything to open an account abroad.
5 years ago, investing directly abroad was an alternative available only to people with large fortunes. The minimum investments were high, and all service abroad was in English, requiring documents with a sworn translation to open an account.
