Looking back over the ups and downs of the financial markets over the last ten years, you would expect that in another ten years time, we will be looking back at the last six months as just one of the downs in a time of great worldwide economic expansion. I’m sure when we look back from the horizon, the waves that we are experiencing now won’t seem half as big from a distance. 

Whilst there is a huge amount of speculation in the media about the state of the world economy and the possibility of a recession in the UK and USA, world markets in general are still buoyant and the economies of the BRIC (Brazil, Russia, India and China) countries show no signs of slowing down whatsoever.

Even in America where house prices have reportedly dropped up to 20% in some areas, there is very little chance – other than if we were to experience a global recession – of prices being driven down any further. This seems unlikely due to investors from other countries, especially from the cash rich states of the Middle East, who are now considering America as a viable option, and the fact that the worst of the recent credit crunch now appears to be over. All in all, economists at Goldman Sachs are telling clients that “Money markets are back to a more normal situation”.

Combine this with the strength of the Pound and the Euro against the US Dollar, and for me, investing in America has never seemed like such a bargain.

“It would appear that from the sharp spike in traffic we have received in the beginning of 2008 that the wise investors realise there has never been a better time to consider the USA property market” said Peter Mindenhall, Business and Media Manager for Propertyshowrooms.com, he went on to add that “we have seen enquiries for property in the USA nearly treble on the monthly average of last year “

Even with all the recent turbulence, most experts’ outlook is positive: David Smith of the Sunday Times Business section said last week that “The International Monetary Fund’s (IMF) latest forecast of 4.1% global growth this year is down on last year’ 4.9%,but is still very strong. Between 1998 and 2003 for example, global growth averaged only 3.3% a year”

Peter Mindenhall, of Propertyshowrooms.com said after analysis of the company’s traffic figures for January, “We have recorded a huge increase in interest for established, secure markets such as Portugal, Cyprus and the USA and traffic figures are up 180%, 44% and 186% respectively in these areas. As well as the established markets, one area that is gaining attention from all over the world is Brazil, where we have seen figures more than double at the start of this year”.

Brazil is somewhere I can really see taking off:  As one of the true economic powerhouses, it is common knowledge that Brazil is tipped by Goldman Sachs to become one of the top 5 economies in the world by 2050.  With a GDP equivalent to half of Latin America and the recent discovery of even more oil in the country, their economic position is only going to go from strength to strength.

Part of Brazil’s portfolio of titles include being the world’s largest coffee producer; 2nd largest mobile phone producer; 4th largest manufacturers of private aircraft; 6th largest for cosmetics production; and it is are ranked 7th in the world on the Foreign Direct Investment Confidence Index ($18.2bn, 2004) as well as being the 8th largest producer of steel.  Brazil now, after 12 years, finally has a positive trade balance, indicating that the situation will be improving even further.

So, apparently it’s not all doom and gloom out in the investment world and, whilst some countries may not perform as well as the people who have invested in them had previously hoped in 2008, there are still plenty of places that could surprise us all, and outstrip the growth of some of the more consistent locations; my money is on Brazil being one of those countries.

I would recommend to anyone out there feeling a little queasy about the markets to not look too closely at what is happening right now and to start looking out to the horizon, otherwise you may just miss the boat…...