Even with renewed doubt about Greece’s rescue and the viability of major European financial firms in recent days, markets in the United States and Latin America have been showing some hopeful signs of stability in recent sessions.

My feelings during the August turmoil have been that a prudent course of action is to wait for the volatility level to settle back and for the economic and financial pictures to clear before heavily allocating your investments into growth stocks. But it’s never a bad idea to prepare for the next war rather than arm ing yourself for the last campaign. Those with sufficient risk tolerances to establish positions in growth investments near market troughs traditionally enjoy outsized percentage gains during the early stages or recoveries. Correctly anticipating a move is more rewarding than chasing performance.

I anticipated the market turbulence in May and moved the Latin Stock Investing model growth portfolio largely into cash. But I have recently reduced the growth portfolio’s cash posi- tion from more than 40% during the summer to its current level of slightly more than 10%.

Aside from its cash buffer, the model growth portfolio (see the last page of this report) currently contains the following eclectic, diversified selection of stocks: • A pair of metals companies poised to participate in an eventual worldwide recovery in manufacturing; • A manufacturer with an established hold in some solid niches of the aircraft industry: • An online technology firm serving much of Latin America; • An emerging energy firm with major stakes in onshore and offshore Atlantic petroleum deposits; and • A company dominant in alternative energy and sup- plying a major agriculturally derived commodity.

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 recovery week in Latin America included:

• Compania de Minas Buenaventura S.A. (NYSE:BVN) +7.9%
• GOL Linhas Aereas Inteligentes S.A (NYSE:GOL) +7.8%
• Tim Participacoes S.A. (NYSE:TSU) +7.2%
• Lan Airlines S.A. (NYSE:LFL) +6.7%
• Banco Santander - Chile (NYSE:SAN) +6.5%
• Data date: 8/25/11