Banco Santander Brasil (NYSE:BSBR)

Banking in BRIC countries will skyrocket in a few years

Well, fundamentally the stock looks nice. However there is bank and Santander words in it and STD itself finds sub-10% core tier-1 problematic to the point that it announced that it would sell BSBR near an all time low and SAN at a mid term bottom price to raise capital.

In fact, most of financial system nowadays is filled with dark liabilities well in excess of what anyone can imagine and this is likely to carry everything linked directly or by far to it. Also a lot of assumptions in our economies are based on the fact that people will retire with income due to pension funds. As those are found insolvent or fall short of meeting commitments, what will happen to risk assets in your opinion ?

The best investment strategy nowadays is to secure a debt free status and hoard real life assets such as prime location condos and pastures to rent, exploit and live in without expense when the World falls apart. Once this has happened, BSBR will probably have survived as a business and be cheap beyond belief. Then buy it.