Business has been good in Brazil, with the government and consumers alike enjoying the benefits. That means everyone has money to spend for improvements, whether it’s for the nation’s infrastructure or personal lifestyles.

Brazil’s government is planning huge investments to improve Brazil’s highways and byways. At the same time, a growing middle class is eager to snap up new automobiles and homes.

Certain Brazilian companies are well positioned to profit from the convergence of all of these spending trends. They supply the raw materials needed both to build new roads, as well as new dishwashers. And with such strong spending trends fueling growth, Brazilian firms that cater to both these needs are poised to reap the rewards.

Infrastructure Spending Spree

Merrill Lynch & Co. Inc. (MER) recently raised its annual infrastructure-spending estimate for emerging markets by 80%, as developing countries utilize large cash reserves generated by their fast-growing economies to bolster domestic development, BusinessWeek reported.

Investment in infrastructure will rise from $1.25 trillion to $2.25 trillion annually over the next three years, Merrill Lynch estimates. China, the Middle East, and Russia will account for 70% of infrastructure spending, but Brazil won’t be lagging far behind.

The government’s program to facilitate infrastructure and construction investment, Programa de Acelere do Crescimento (PAC), was announced in January 2007 by Brazilian President Luiz Inacio Lula da Silva. The program is designed to provide government aid to complete construction projects more quickly and will focus on everything from upgrading oil, natural gas and electricity systems to expanding transportation and sanitation systems, as well as telecommunication networks throughout Brazil.

Through a combination of government funds and private investment, it is estimated that $235 billion (BRL500bn) of infrastructure development will occur during 2007-2010.

That’s a close match to Merrill’s own estimate of $225 billion in Brazilian infrastructure investments over the next three years.

And no one is in a better position to benefit from this huge influx of capital investment than Brazil’s own domestic resource companies. Without the huge shipping charges associated with buying steel from Asia or Australia, its only natural that contractors will turn to fellow Brazilian firms when it comes time to buy raw materials.

Consumption-Hungry Middle Class

While industrial and government capital investment is surging, consumer spending in Brazil is on the rise as the red-hot economy helps to expand the Latin American nation’s middle class.

In the past two years, more than 23 million people have leapt from Brazil’s lower income classes into the middle class, which is defined in Brazil by households with incomes between $450 and $745 a month. Brazil’s middle class now makes up almost half of the country’s population, according to Reuters.

And that expanding middle class is more than ready to spend some of its newly found disposable income on items such as automobiles, new homes, appliances and electronics. Household consumption rose 6.6% in the first quarter of this year, according to the nation’s statistics agency.

Now things have changed and the country is coming into its own. As the world beats a path to Brazil’s door, for everything from soybeans to sugarcane to base metals — and soon oil and gas — the cash is pouring in.

Better still, a recent event has opened the doors to even more opportunity in Brazil. Taipan’s executive publisher, Sandy Franks, has the details.

Enjoy your weekend,

JL

Brazil Receives S&P Credit Rating, Becomes New Opportunity for Investors

Would you like to grow your “safe money” by 225% over the next three years while collecting 9% annual dividends? Here’s how to do it… by Sandy Franks, Executive Publisher, Taipan

In a shocking move, Standard & Poor’s has upgraded Brazil’s credit rating, lifting the country to “investment grade” for the first time in history.

The upgrade sparked a 6.3% rise in the index of the Sao Paulo stock exchange, or Bovespa, which soared to an all-time high of 67,868 points.

President Luiz Inacio Lula da Silva, basking in the investment upgrade, said it was a “magical moment” for Latin America’s largest country.

While the upgrade is good news for Brazil’s economy, it also presents YOU with a remarkable opportunity.

In fact, if you’d like to grow your “safe money” by 225% over the next three years while collecting 9% annual dividends… then please pay special attention to this “ground floor” investment opportunity.

Let me bring you up to date on the situation. Until Brazil received its recent credit rating, the country was considered a high-risk investment only for the brave and the bold.

The South American nation was strapped with billions in debt, and many investors believed the new leftist president would ramp up already-high government spending.

Consequently, many of the big institutional investors waited on the sidelines. But not anymore…

The ongoing commodity boom has flooded Brazil with cash. The economy is growing leaps and bonds.

An estimated 20 million Brazilians have emerged from poverty on cheap credit, welfare checks and tax breaks, helping to forge a new middle class that in turn is fueling strong consumer demand.

And S&P’s investment upgrade is a signal that Brazil’s stock market is off to the races.

The upgrade will make it possible for a wider universe of international investors, including massive U.S. pension funds, to plunge into the Brazilian stock market.

This means that Brazilian stocks will see an influx of cash. For investors, this is an opportunity to get in on the ground floor of some of the amazing opportunities you’ll see coming from Brazilian companies in the coming months.

It’s really simple: Because of S&P’s upgrade, one of the most lucrative stock markets on the planet is now also one of the safest!

If you’re looking for a safe, simple way to grow your money – and collect great income – Brazil is an essential addition to your investment portfolio.

Not only that, but investing in Brazil is a great way to PROTECT YOUR MONEY against the falling U.S. dollar, the slumping U.S. economy, and the risky U.S. stock markets.

And because Brazil’s economy is growing leaps and bounds, a modest investment today could grow fivefold in the coming years.

Let me put it this way: To ignore investment opportunities in Brazil would be a horrendous mistake that could cost you dearly.

Of course, the best time to invest in Brazil is right now. While the news of Brazil being an attractive investment opportunity is just now making headlines, our team of editors has already alerted readers to the situation.

In fact, Sally Limantour, editor of Taipan, our flagship publication, has isolated the single best stock to own in Brazil. Not only that but it’s just about one of the safest stocks you could own.

The company is Brazil’s largest utility company. It is big, strong, and offers a rock-solid way to grow your money and collect great income.

During the next decade, Brazil will experience massive growth. Its people, businesses and government will need power.

This company is in perfect position to supply most of the country’s power needs. It has returned over 225% over the last three years. Sally expects it to generate similar gains for years to come.

The best part: It pays a whopping 9% annual dividend, and you can buy shares without sending one single dime overseas.

Already, Brazilian stocks have awarded smart American investors.