The Coming Latin American Boom

Explosive growth in Brazil, Uruguay and Argentina is fueling gains of 125%, 136%, 361% or more… and here’s how to play it…

According to the World Bank, the economy of Latin America grew twice as fast as the United States last year. And it’s on track to do the same this year.

So while the United States and Europe worry over huge deficits and threats to a fragile recovery, some smart Oxford Club members have already been scoring with these winners…

125% on Panama’s Copa Holdings in 40 days…
361% on Argentina’s Mercado Libre in 7 days…
135.7% on Mexico’s Fomento Economico in 60 days…

Foreign investment in Latin America will grow to more than $100 BILLION this year.

According to the Economic Survey of Latin America 2009-2010, the leaders in growth this year are…

Brazil… with a projected gross domestic product (GDP) expansion of 7.6%…
Uruguay and Paraguay with 7%…
Argentina with 6.8%…
Peru with 6.7%…
Chile with 5%…

According to the International Monetary Fund (IMF), growth in the region is being supported by a rise in worldwide trade that benefits countries that export commodities.

Mexico is the largest oil producer in Latin America, while Brazil is the world’s biggest coffee, sugar and beef producer and a leading producer of soybeans, corn, cotton and rice.

Strong demand in Asia for commodities like iron ore, tin and gold, combined with policies in several Latin American economies that help control deficits and keep inflation low, are encouraging investment and fueling much of the growth.

Latin America’s growth largely reflects a deepening engagement with Asia, where China and other countries are also growing quickly.

In fact, China surpassed the United States last year as Brazil’s top trading partner. And is the second-largest trading partner in countries like Venezuela and Colombia.

And capital flows to emerging markets could continue to increase as faster growth and low debt make them more attractive to investors than some advanced economies.

Opportunities abound not only in commodity-based plays, but also among companies catering to Latin America’s growing wealthy population and middle class.

According to Forbes, “Latin America’s rich are expected to increase their total wealth to $10.3 TRILLION by 2012, more than double what it was in 2005.”

“The total wealth of the region’s rich will have increased at the double-digit rate of 10.8% a year, compared with a worldwide rate of 7.7%.”

The bottom line is that Latin America’s vast natural resources and growing GDP are driving the next phase of development in the region.

And savvy investors who get in now could watch their investments easily double or triple as the Latin America boom continues…

Recent growth spurts around Latin America have surpassed the expectations of many governments themselves…

  • Brazil, the region’s rising power, is leading the regional recovery from the downturn of 2009, growing 9% in the first quarter from the same period last year. Brazil’s growth for 2010 could reach over 7.6%, the nation’s fastest expansion in 24 years.
  • After a sharp contraction last year, Mexico’s economy grew 4.3% in the first quarter and may reach 5% this year, the Mexican government has said, possibly outpacing the economy in the United States.
  • Smaller countries are also growing fast…

  • In Peru, where memories are still raw of an economy in shambles from hyperinflation and a brutal two-decade war against Maoist rebels that left almost 70,000 people dead, gross domestic product surged 9.3% in April from the same month of last year.
  • Chile, for instance, saved revenue from copper exports when commodities prices climbed, allowing it to enact a stimulus plan last year and rebound from the February earthquake. Chile’s economy grew 8.2% in April from the previous month, its biggest increase since 1996.
  • The key to making a fortune in this age of global markets is to invest in the most rapidly growing companies of today – many of which are international companies – so you can enjoy a life of total financial independence tomorrow.

    Source: Oxford Club

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