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Let's (focus) on Brazil a moment. What's your outlook here?

I have said before that the fate of Brazil is linked to that of China. Most of the commodities that Brazil exports, like iron ore and carbon steel, are products related to infrastructure investments not consumption products. Thus it is important to understand what will be the effects of the crisis in emerging Asia, particularly China and India.

Asia's development has been complementary to U.S. growth; while U.S. provides consumption and need for investments, Asia provides cheap industrial goods and huge savings at low rates. This symbiotic relationship is over. Asia will have to develop its own internal market in order to keep on growing.

This situation reminds me what happened to Brazil after the 1929 crisis. Prior to 1930, Brazil was a country whose economy was based in the export coffee to U.S. and Europe, just that. After the crisis, coffee prices collapsed Brazil had to focus on the internal development and industrialization, and this was the beginning of the development of an internal market in Brazil. Between 1930 and 1973, Brazil had the fastest growing economy in the world. This trend ended after the first U.S. oil crisis, in the 1970's.

Most of the time, crisis represents also opportunities! There is a considerable chance that this crisis will lead to the emergence of a huge consumption market in Asia in the medium-term.

Speaking of opportunities, do you have any Buy recommendations for us today?

There are some bargains that must be considered. Brazilian electric utilities pay high dividends, generate lots of cash and are trading at very low valuations. I would recommend Cemig (NYSE: CIG) and Copel (NYSE: ELP). Telecom operators are also interesting -- genuine cash cows with low exposure to the downward economic cycle. Tele Norte (NYSE: TNE) and Brasil Telecom (NYSE: BRP) are great alternatives.

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