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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