Latin America's Emerging Markets

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