Economists have grouped two sets of nations together to identify present financial realities: Portugal, Ireland, Italy, Greece and Spain are the PIIGS and Brasil, Russia, India, China and Spain are the BRICS. So which is better to invest in, according to wealth advisor Igor Cornelsen.
“PIIGS Are Old Money”
In 2008, the term of PIIGS was coined to describe certain European nations on icrowdnewswire.com, whose economies were in dire straits. Having a downturn is natural during a recession, but some countries had deep systemic problems. Portugal has a primarily agricultural workforce, which does not produce many manufactured goods.
Ireland has some of the highest late mortgage payments in the world; plus a very high foreign debt. Italy has a vast bureaucracy. Greece is terminally in debt, it has already sold off most of its valuable resources. Spain had a horrible boom and bust in its real estate market.
Some financial analysts like Igor Cornelsen suggest that you “invest in the PIIGS because with their high debt, they also have high interest rates on their bonds.” This might be acceptable, if you have a high risk tolerance and believe the PIIGS will repay their debt.
Read more: Investing in the Future Success
“BRICS Have Potential”
This historical parallel is somewhat apt because Brasil was colonized by the Portuguese. But when given a chance, the Portuguese royal family chose Brasil in the 1800s. Why?
Europe has great technology, but after centuries, its natural resources have been used up. Brazil has a wealth of untapped resources, including oil according to Igor Cornelsen. Russia is #1 or #2 for many petroleum resources. India is a sub-continent with tremendous intellectual potential – many IT professional are from that nation.
“Made in China” is the new label for so many products on Planet Earth. China and India have the highest growth rates in the world. South Africa has tremendous gold mines and leads the continent. The BRICS have vast potential for high growth.
“What Does Igor Cornelsen Say?”
Investment consultant Igor Cornelsen will talk to you about your “Risk Tolerance.” What do you want to achieve? Can you handle high-risk and high-reward? Would you like to invest in future BRICS growth rates?