The Economist describes President Bush's trip to Latin America this week as his "spring break" but there is serious business at hand. In particular, exchange-traded funds or ETF investors should follow his agenda in two countries, Mexico (EWW) and Brazil (EWZ).
In a recent poll for the BBC World Service, 64% of Argentines, 57% of Brazilians, 53% of Mexicans and 51% of Chileans said they had a “mainly negative” view of American influence. But economic ties grow stronger every day. Brazil, in particular, is still one of the cheapest markets in the world with a much stronger balance sheet than even a few years ago. On a price to earnings basis, the main Brazil index trades at just over eleven times earnings. Mexico is a bit more expensive at fifteen times earnings. Keep in mind that 28% of the Mexico ETF (EWW) basket is in two companies: America Movil SA and Cemex.
Mr. Luiz Inácio Lula da Silva, Brazil's president, is expected to visit Mr Bush at Camp David in a few weeks.
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