Investment Opportunities in Chile's Commodity-Based Economy

World Market Pulse submits:More and more investors are now trying to include commodities in their investment portfolios as there is an developing nation demand increases in Asia and other parts of the world offering a good wealth creation opportunities for the global investor.

David Hunkar submits: Before the credit crisis struck, Latin American markets were the hottest destination for foreign investors. However, in recent months Latin American countries such as Brazil, Argentina, Mexico, etc. have been lagging other emerging markets in terms of equity market performance. The economies of Latin American countries were relatively unscathed by the recent financial crisis and rebounded strongly from the depth of the crisis as shown in the graphic below:

World Market Pulse submits:For years the most prominent feature of Mexico has been its exotic cuisine with all its varied flavors, colorful decoration, and variety of spices while investment options were never taken seriously.

David Hunkar submits: Before the credit crisis struck, Latin American markets were the hottest destination for foreign investors. However, in recent months, Latin American countries such as Brazil, Argentina, Mexico, etc. have been lagging other emerging markets in terms of equity market performance. The economies of Latin American countries were relatively unscathed by the recent financial crisis and rebounded strongly from the depths of the crisis, as shown in the graphic below: (Click to enlarge)

Latin America might follow Brazil's fate, while earlier only Brazil had problems with inflation and devaluation caused by quantitative easing, or the so-called currency wars, reported Financial Times. Recently Japan's newly elected government also announced the start of a campaign for printing money. However countries from Latin America with more conventional and free-trading economies like Chile, Mexico, Peru and Colombia might also catch the vibe of quantitative easing.  

By David Hunkar: China is becoming a major trade partner with many Latin American countries. China’s main interest in the region include natural resources such as oil, iron ore and agricultural commodities such as soya beans. Latin American countries’ trade with China increased tenfold in the period 2000-2007. However the U.S. is still the largest trade partner with Latin America. China’s trade in Latin America accounted for just one-fifth of that of the U.S in 2008.

By Nicholas Pardini:With the global economy ns flux, it is a hard time to find consumer stocks that will not be crushed by the weakened American consumer. Arcos Dorados (ARCO), the Latin American holding company for McDonald's (MCD), offers the growth potential of the emerging market consumer while having the stability of a long standing American brand.