Stock markets worldwide have suffered bone-shattering volatility since my Aug. 4 Trading Alert. But those who followed my advice on “Buying Income Stocks” might be able to get a bit more sleep at night than most other investors.

In these times of violently thrashing markets, a portfolio of stocks paying regular dividends represents an oasis of certainty in a market that seems perpetually on the edge of catastrophe. In the Portfolio at a Glance section at the end of this week’s update, you will find major changes in the LSI Model Dividend Stock Portfolio. While the values of the individual holdings, such as airport operator OMA (NasdaqNM:OMAB) are sure to fluctuate, the group is virtually certain to generate a steady, dependable stream of income.

Why target Latin America in assembling a stable of income stocks? Two points from my Aug. 4 Trading Alert are worth recounting.

First, I noted that the Latin American stock markets and currencies are likely to do better than those in the United States and developed economies. “Basically, the world is growing on two tracks, the old world order including the U.S. versus the newly emerging markets which are growing twice as fast,” I wrote.

Secondly, I underscored what I have stressed many times before that investors shouldn’t view Latin America merely as a exporter of goods, agricultural commodities and raw materials to the “developed” industrial world. The region’s rapidly expanding middle classes are spurring huge gains in internal consumption of an array of home-grown products and services.

Read more in the attached weekly update and ...

Happy trading this week!

Rudy

The market-leading stocks during this volatile week in Latin America included:

• Goldcorp, Inc. (NYSE:GG) +10.9%
• Embotelladora Andina (NYSE:AKO-A) +7.8%
• Gafisa S.A.(NYSE:GFA) +7.7%
• Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NasdaqNM:OMAB) +6.4%
• Grupo Simec, S.A. de C.V. (AMEX:SIM) +6.3%