Notes on Latin American economy

Here's some notes I took today regarding the Latin America economy. The region is looking strong and yes I do own iShares MSCI Brazil Index ETF (EWZ) . Despite some hiccups toward mid-'06, it has performed wonderfully for me. Also there's my updated global markets notes/outlook.

  • Stabilization: double-digit economy growth vs. triple-digit two decades ago
  • Commodities: 40% of market cap
  • Lowering budget deficit
  • More attractive FI market: @ same yield @ rating as U.S. FI market, Latin America's rating more likely to be upgraded soon
  • Mexico, Brazil & Argentina strong
  • More consumer savings & credit (20%/yr)
  • Cheapest equity @ <10x earnings vs. >11x in Asia & >15x for rest of developing world
  • Strong sectors: consumer/industrial, retail, media, energy

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