Issue #1

Latin Stock Investing | Oct. 15, 2008

Dear Subscriber,

Last week global investors voted their opinions about the United States government's proposed financial services bailout.

On September 29th, the Dow Jones Industrials dropped 7%, while the average S&P500 large capitalization stock slid 9% in just one day. In Latin America, the financial market reaction was also negative. The Brazilian Bovespa index plunged 9% and Mexico's Bolsa dropped 6% for the day. Passage of the bill on Friday was greeted with more selling on Wall Street.

What investors need to know is that the legislation gives
the US Treasury the resources to buy $700 billion in
troubled and illiquid assets to jump start the stalled
financial system. But even with this, financial lending is
expected to be slower next year as the US economy slows.
You don't have to be a capitalist to see that lower lending
volumes will have direct impact on Latin American
corporate financing.

Venezuelan President Hugo Chavez was quoted as saying,
“This is a hurricane or more than one hurricane, it's a
hundred hurricanes.”

But don't be fooled by this overly sour quote. This
description comes from a man who earlier this year put
billions into a new regional development bank, Banco del
Sur, along with twelve other governments under UNASUR
(Union of South American Nations) sponsorship. Chavez
has also been actively courting China to increase oil sales.
Despite all the negative rhetoric from Chavez, the US still
buys half of Venezuela's oil.

What is clear is that Latin American companies are now
less dependent on the US for business than in the past,
especially the highly-profitable exporters. Quite honestly
Latin exporters have been challenged to reinvest all the
cash they were generating from booming commodity
revenues.

Latin American internal financing ability is now stronger
than ever. Look at Brazil's investment-grade and strong
corporate credits. With its strongly capitalized banking
system it is in an ideal position to extend its influence
beyond South America or raise capital abroad for large
projects.

Foreign direct investment, as illustrated by the recent
Japanese consortium seeking to buy an iron ore producer,
is now coming increasingly from China, Asia and Europe.
Latin America's financial resilience is supported by three
mega-trends. Latin America's population explosion, energy
self-sufficiency and materials wealth are the unstoppable
forces. Even in a slower world growth environment these
trends will create new wealth building opportunities.

In this newsletter, you will also read comments on:
· How will this credit crunch impact corporate financing?
· Which companies will benefit from a stronger dollar?
· What options do you have to moderate risks?
· Where can you find better investment yields?
· Which sectors might benefit post-US election?

Go ahead and act now on the investment ideas in this
newsletter.

Best wishes and happy trading!

+ Rudy