| Investment Opportunities - How to Enter the | | | | How to enter this market, diversify your |
| Game | | | | investment, and take part in the growth? |
| | | | Without expanding your business into Latin |
| Since the arrival of Colombus, Cortes and the | | | | America, international investors have the |
| subsequent invasion of the conquistadors, | | | | opportunity to purchase these shares directly |
| Latin America has suffered a difficult past | | | | via an ETF (exchange traded fund). We |
| and struggled to establish an open and fair | | | | recommend the iShares MSCI Brazil Fund (EWZ) |
| democracy with modern economic policies. | | | | which has a 3 year annualized return of |
| Cortes and his men in 1518 led the | | | | 46.25%. Or, for Mexico, the iShares MSCI |
| destruction of Mexico's Aztec Empire, | | | | Mexico Fund (EWW) with a 3 year annnualized |
| followed by Pizarro's brutal annihilation of | | | | return of 40.15%. Clear signs that indeed the |
| the Incan Empire in modern day Peru. A | | | | Latin American markets are emerging, and |
| similar course of events in Brazil, and other | | | | moving at a good pace. For a more diversified |
| Latin America countries completed the change | | | | and simple approach to enter these markets, |
| in history. Unfortunately, nearly 500 years | | | | iShares offers the Latin America 40 Fund |
| later, corruption and inequality are | | | | covering several countries and sectors. |
| widespread, arguably as a direct result from | | | | |
| the conquest, its poor leadership from the | | | | Interested in a more direct investment, or |
| Spanish, the slow healing wounds from the | | | | expanding your operations into Latin America. |
| conquest, and the reluctance of the European | | | | We offer some general advice. Make every |
| blood to share the wealth. | | | | effort to establish relationships or offices |
| | | | in one or more of Latin America's major |
| In 2007, Latin America shows some promising | | | | cities: Mexico City, Bogota, Sao Paulo, |
| signs of change, both in economics and | | | | Buenos Aires or Santiago. It's safe to say |
| government reforms. With this slow social | | | | that nearly all of the action is here. Learn |
| change, comes a rather rapid economic and | | | | the language, hire someone who knows the |
| market change with potential opportunity for | | | | culture and the language, or hire an outside |
| foreign investors. First, let's sort out the | | | | consultant such as Cinnamond Global to screen |
| good from the bad in terms of economic and | | | | opportunity and liason with the foreign |
| investment - based mainly on leadership and | | | | business. Be skeptical and approach offers |
| the division within Latin America of left and | | | | with caution in this market with slack |
| right, or closed and open economies. Major | | | | regulation. Understand the risk-reward |
| countries with less prospects include | | | | relationship. Lastly, when dealing with a |
| Ecuador, Venuezuela, and Paraguay. While | | | | small or medium-sized firm in Latin America, |
| those countries in Latin America with a wide | | | | and especially when dealing primarily with an |
| margin for growth are Brazil, Argentina, | | | | individual, get a professional background |
| Chile, Peru, Colombia and Mexico. | | | | check from a firm like Wymoo who can validate |
| | | | the company and contacts. |