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Global Investing

When Investing in Latin America, Politics Point the Way to Profits

Brazil's election win by the Workers Party candidate Dilma Rousseff has cast a dark shadow over the investment prospects of that long-fashionable "BRIC" economy.

And it has underscored an important lesson for investors: In Latin America, the political climate is really the No. 1 factor in determining where to invest for the long run.

In short, when looking to invest in Latin America, let politics be your guide to profits.

To learn which Latin American markets offer the biggest profits, please read on...

Six Ways to Profit as Consumerism Supplants Exports and China Throttles Up GDP Growth

BEIJING, People's Republic of China – There's something inherently satisfying about waking up on a clear, crisp fall day in this bustling capital city, and seeing this headline atop the lead story in this morning's China Daily newspaper:

"World Bank Sees Change in Growth Pattern"

In essence, the World Bank has finally acknowledged what we've been telling you for several years – that China's accelerating domestic growth is already reducing its once-almost-total reliance on exports.

This is an important validation of our investment strategies and of China's newest economic policies. Investors who see and understand these developments can expect to enjoy some significant long-term successes.

For six ways to profit from this new Beijing policy, please read on...

United States To Face Attacks on Quantitative Easing Policy at G20 Summit as Currency War Rages On

The United States will go on the defense at this week's Group of 20 (G20) meeting, having to explain its quantitative easing (QE2) policy to foreign leaders who have criticized the move as a currency war tactic to weaken the dollar and damage other countries' export-driven recoveries.

China, Brazil, Germany and South Africa all have spoken out against the U.S. Federal Reserve's announcement last week that it will buy $600 billion in U.S. Treasuries through June. Finance policymakers from around the globe say the move will depress the dollar and drive capital flows to emerging markets, creating asset bubbles.

Brazil's central bank president Henrique Meirelles said the extra liquidity in the U.S. economy would cause "risks for everyone," and German Finance Minister Wolfgang Schaeuble called the Fed's move "clueless."

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Warren Buffett Emphasizes Investment Risk Management With Successor Pick Todd Combs

Warren Buffett's announcement Monday that a little-known hedge fund manager, Todd Combs, will help oversee his $100 billion investment portfolio at Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) surprised investors and highlighted Buffett's emphasis on risk management for investment success.

Adding 39-year-old Combs to the Berkshire team makes him a top contender to take over Buffett's investment management duties whenever the Oracle of Omaha leaves his company.

"He is a 100% fit for our culture," said Buffett. "I can define the culture while I am here, but we want a culture that is so embedded that it doesn't get tested when the founder of it isn't around. Todd is perfect in that respect."

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Question of the Week: Mortgagegate Makes Investors Wary of U.S. Banking Industry

A potentially crippling crisis is flashing through the banking industry and threatening to derail the already struggling housing market and U.S. economic recovery.

But Gilani said the headlines aren't telling the full story.

Dubbed "Mortgagegate" – a nod to the earlier scandal-ridden crisis touched off by Watergate – this latest crisis involves such big lenders as Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C) and GMAC LLC (NYSE: GMA), which are alleged to have conducted negligent foreclosure practices. 

Money Morning Contributing Editor Shah Gilani warned about the allegedly fraudulent business practices employed by lenders and their hired "robo-signers" that led to thousands of questionably reviewed foreclosure documents.

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Singapore Moves to Restructure Asia's Stock Exchange Model With Australia Merger

Singapore Exchange Ltd. (SGX) announced yesterday (Monday) it agreed to buy Australia's main stock exchange, ASX Ltd., for $8.3 billion. The deal came about because both countries seek strength against growing Asian market competition, and Singapore strives to be a more sophisticated global financial center.

In a cash and stock deal, Singapore's stock market operator is offering A$48 (U.S. $47.11) for each ASX share, consisting of A$22 in cash and 3.743 SGX shares per ASX share. The offer is at a 37% premium to what ASX shares traded on Friday.

"The combination of ASX and SGX, offering innovative new products and services to the market, will allow customers to maximize future opportunities, where Asia Pacific takes center stage globally as the source for capital, wealth creation and trading opportunities," SGX Chief Executive Officer Magnus Bocker said in a joint statement.

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How to Profit From Europe's Stealthy Resurgence

European countries – both inside and outside the Eurozone – are slashing their budget deficits. Sure, some – like Greece and Spain, have to. But others are too. And here's the surprising reality: Europe may gain from its fiscal pain – and its deficit-trimming actions offer the best hope for a lengthy recovery. Find out how, in this free report.

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Author Chat: Money Morning's Martin Hutchinson Talks About "Alchemists of Loss"

The Nobel Prize panel granted its top award to seven leading economists – whose theories went on to cost investors trillions of dollars in losses.

This story – as well as some of the other top financial fiascos through the ages – is detailed in the new book, "Alchemists of Loss: How Modern Finance and Government Intervention Crashed the Financial System," which was written by Martin Hutchinson, a former merchant banker and Money Morning columnist, and Kevin Dowd, an economist and respected academic.

Money Morning Executive Editor William Patalon III recently sat down with Hutchinson, to talk about the book. Here are some excerpts from that discussion.

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Defense Suppliers Compete for a Piece of India’s Multibillion-Dollar Military Revamp

The Boeing Co. (NYSE: BA) is in talks with India for a $5.8 billion military aircraft deal as the country triples its defense budget, leading defense suppliers to compete for a piece of the multibillion-dollar action.

India is negotiating with Boeing over the purchase of 10 C-17 Globemaster III aircraft, which would be the largest defense order from India for Boeing, the second-largest U.S. defense contractor. India's Finance Minister Pranab Mukherjee said in February the government would spend $33 billion on defense in the fiscal year starting April 1.

The Asian country's "defense procurement budget is quite huge," Laxman Kumar Behera, a research fellow at the Institute for Defense Studies and Analyses in New Delhi, told Bloomberg. "The U.S. arms industry has become quite interested in the Indian defense market."

Boeing expects to bid for as much as $31 billion of military contracts in the next 10 years as India looks to replace aging Russian-made equipment.

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As the Rescue of the Chilean Miners Shows, this South American Country is Superbly Managed and an Enticing Investment

The efficient, well-managed rescue of the 33 Chilean miners was an affecting spectacle for the world. It also should remind us that Chile is a well-run country, and that in an era when commodities are ever more important to the global economy, it is becoming an essential part of investors' portfolios.

To find out how investors can cash in on this emerging economic powerhouse read on…

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