Moderate Inflation in a Good Economy

Why there tends to be moderate inflation during good economy ?

In this video, we can see the simple circle of inflation in a good economy. It’s very good !

Good studies and happy new year for we !

Bye bye !



How boost your investments in 2012

If you want boost your wallet of investments in 2012, apply in bonds indexed the indices of price and bet in private papers, both fixed income and equity, but run oh all types of investmens related with Europa now.

In fixed income, the possibility of increase of inflation plus the goal declared of government of continues reducing the interest favor, second the managers, the aplication in NTN-Bs, bonds indexed the IPCA. This vision ignores, for now, no returns for the center of the mark 4,5% in next year.

In variable income one of the most common recommendations is to replace the equity funds indexed to the broad indexes, such as the Ibovespa  or the IBrX to invest in funds focused on small and medium companies or related to the infrastructure sector. In the first case, the reason is to enjoy the heating of the internal market. The premise for investing in these equitys is that smaller companies are better positioned to benefit from the increased consumption, and stay further away from the economic problems of developed countries, because the foreign trade transactions are small in relation to total revenue.

Another suggestion is to choose managers of equity funds that adopt the investment policy review as the basis for each company to then determine the allocations. This approach, known as “bottom up”, places greater emphasis on individual analysis of each company’s performance than to the behavior of the economy as a whole. Particularly in times of crisis, this strategy is useful to identify investments that may be less affected by variations in the global market.

Managers also call attention to the risks of investments. Applications more secure, yet cost effective, are still the traditional DI funds and LFTs, bonds corrected by the Selic rate negotiated with the Treasury Direct. In the level currently planned for the interest savings accounts is not yet a viable alternative to hit the profitability of good funds and bonds.

Any manager sees an opportunity to experience adeterioration of the strong Brazilian economy on the point of cause the dollar’s sharp appreciation compared to the real. Rather, the most common recommendation is to not invest in foreign funds, especially those tied to the euro.

Finally, all managers are unanimous in recommending investment diversification. Even for the more aggressive wallet, the recommendation is to keep at least 50% of funds in fixed income.

As interest rates above inflation are still high, if you are looking for consistent gains on their investments next year, diversify your wallet and only invest in assets you know both the expected gains and mainly, the possibility of losses .




The best actions of 2011

ON Cielo, with profitability in the year of 48% by the 25th of November was the second most profitable Ibovespa in 2011, second only to Redecard ON, with 49%.

Reporting by Luciana Monteiro and Daniel Camba, of Value, listed the shares comprising the main stock index had positive returns in that year, despite a drop of about 20% of the market as a whole.

An interesting point about the performance of Cielo ON, and six other stocks that were among the 10 most profitable in total period of eleven months it was considered incomplete in the analysis of the report, is that none of them managed to win the title of best action performance of a closed month that ultimately formed the entire period.

In the group of roles in more profitable years, Redecard ON was the champion in July, Cia Hering ON had the best performance in the months of March and April and Ambev PN beat all the others in August.

In January, February, May, June, October and November (up to 25 days), the actions that had the best monthly performance did not appear among the 10 most profitable year, when the calculation took into account the full term.

ON Usiminas was the best in January, LLX ON in February, American Stores PN in May, Sugar Loaf PN in June, Embraer ON in September, JBS ON, in October, and Marfrig ON in November. Note that none of them accumulates positive returns in 2011.

The relevance of this finding, and serves as a good guide to their investments in stocks, is that consistency of performance is critical in the long run. More important than choosing the action with the best value in a given month (or any other period) is to invest in those that consistently deliver above average earnings. But it is not easy.

See, for example, the case of Marfrig ON. Although the paper have been among the 10 most profitable of eleven months analyzed, significant losses between August and September wiped out the gains accrued in the remaining months.

Therefore, to enhance the success of their investments in stocks, set a strategy for long-term investment tips and avoid the short term, which in most cases, undermine the profitability of its investments and its strategy away from you.