Hot Stocks and Latin America / South America Markets
Okay, back to hot stocks and my daily stock picks. Well back to South America. Right now almost every country is showing huge growth as the world needs the non durables that Mexico, Central America and South America are exporting. The year over year growth in these countries is staggering. In addition, the average age and buying power is shifting as there is increasing buying power from a younger average demographic and a burgeoning middle class or lower middle class. Any country exporting to these countries or even investing in some of the foreign markets as securities creates enormous opportunity. We are involved in exportation to the aforementioned countries and always are asked by our distributors if we can send electronics, recreational items and other durables. They are so expensive in these countries and limited that there is a huge opportunity for those who are willing to respect the cultural demand of doing business primarily in Spanish, respecting the culture and providing good customer service. The cell phone business is exploding with just a few carriers providing coverage for potentially millions of subscribers. These are good companies to invest in as a sector, ADR or direct investment as recommended by your FINRA registered investment advisor.
All tourist businesses are flourishing in these countries as they are incredible destinations. Having traveled to many of these countries, it is mind boggling how affordable a vacation is. Casinos, jungles, volcanoes, pristine empty beaches, surf breaks, archeological discoveries of Mayan temples and Inca architectural brilliance, countries embracing foreigners…just a portion of what a couple thousand dollars US will buy you for two. You can’t spend money even if you try. 5 lobsters, 5 beers and all the fresh fish you can eat will set you back 10 dollars. 3,000 sq foot luxury hotel rooms with your own pool overlooking the ocean will set you back 50 dollars a night. The only sad note that must be added here is that the relative cost of traveling reflects upon the rampant poverty as the gap between the rich and poor is staggering.
Some of these countries have an average annual income of approximately $2,000. The strengthening exporting power in these countries is helping this situation a bit in addition to the growing tourist industry, but this disparity is an enormous gap not to be soon narrowed. Surprisingly, Columbia is now considered one of the safest countries to travel in with Nicaragua being the second fastest growing economy in Central America while sadly Mexico has one of the highest murder rates per capita in the world. Kidnapping and ransom is another issue in some countries so caution is always recommended while investing or traveling though the most dangerous thing you can do is get behind the wheel in the US with someone texting next to you. Just a bit of perspective on the warped sense of reality the US media feeds us.