Latin America: So Much More Than Just Commodities
Last year, Latin America was home of some of the best performing stock markets in the world. Peru, Chile and Colombia were the number two, three and four best-performing MSCI emerging market country indexes in 2010, driven primarily by the strength in commodity markets.
In fact, something I’ve talked about recently is the “New Silk Road,” which is an expression that has been used to describe the growing commercial interaction between the emerging markets of Asia, the Middle East, Africa and Latin America. This new, 21st-century version of the Silk Road effectively connects China and its voracious demand for commodities with commodity-producing countries.
But Latin America is so much bigger than just commodities. In Latin America, we have positive demographics, relative political stability and pro-business policies — save for Venezuela and Bolivia — as well as the development of consumer economies as prosperity trickles down to the masses.
Let’s take a look at five Latin America investments that are offering some very interesting opportunities: