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Bloomberg Printer-Friendly Page: "Brazil, Latin Stocks Lure Investors Betting on `Quality' Growth
March 9 (Bloomberg) -- Filippo de Luca, who helps oversee $1.1 billion of investments at Switzerland's LMF Servizi Finanziari SA, is moving about 6,000 miles to set up an office in Sao Paulo.
He's confident Latin America has broken its cycle of booms and busts, even after the region's benchmark stock index on March 7 had its biggest drop in almost two years.
``Latin American economies have made a leap to quality,'' de Luca, 35, said in a phone interview from Lugano, Switzerland. ``We are totally convinced that this time the economic growth will be much more sustainable than it has been in the past.''
Overseas investors are flooding into Latin America, lured by such stocks as Brazil's Petroleo Brasileiro SA and Mexico's America Movil SA as the United Nations forecasts a fourth year of growth for the region. Earnings for Latin companies will rise 19 percent this year, compared with 13.6 percent growth for the rest of the world excluding the U.S., said Audrey Kaplan, a money manager at Rochdale Investment Management in New York.
``Looking ahead on growth and considering its valuation, we still feel there are good opportunities in Latin America,'' Kaplan, who helps manage $1.7 billion of assets worldwide, said in a phone interview.
Brazil's Bovespa index has climbed 11 percent this year, Argentina's Merval is up 15 percent and Mexico's Bolsa has advanced 3.4 percent. All three have reached records in 2006, as has the Morgan Stanley Capital International index of Latin American stocks. The regional index has risen 11 percent, heading toward a fourth-straight annual gain, which would be the longest streak since the index was created in 1988.
Track Record
Latin stocks sell for 12.7 times their earnings of the past year, versus 17.9 for stocks globally, based on MSCI indexes.
The region's markets stumbled to start this"
March 9 (Bloomberg) -- Filippo de Luca, who helps oversee $1.1 billion of investments at Switzerland's LMF Servizi Finanziari SA, is moving about 6,000 miles to set up an office in Sao Paulo.
He's confident Latin America has broken its cycle of booms and busts, even after the region's benchmark stock index on March 7 had its biggest drop in almost two years.
``Latin American economies have made a leap to quality,'' de Luca, 35, said in a phone interview from Lugano, Switzerland. ``We are totally convinced that this time the economic growth will be much more sustainable than it has been in the past.''
Overseas investors are flooding into Latin America, lured by such stocks as Brazil's Petroleo Brasileiro SA and Mexico's America Movil SA as the United Nations forecasts a fourth year of growth for the region. Earnings for Latin companies will rise 19 percent this year, compared with 13.6 percent growth for the rest of the world excluding the U.S., said Audrey Kaplan, a money manager at Rochdale Investment Management in New York.
``Looking ahead on growth and considering its valuation, we still feel there are good opportunities in Latin America,'' Kaplan, who helps manage $1.7 billion of assets worldwide, said in a phone interview.
Brazil's Bovespa index has climbed 11 percent this year, Argentina's Merval is up 15 percent and Mexico's Bolsa has advanced 3.4 percent. All three have reached records in 2006, as has the Morgan Stanley Capital International index of Latin American stocks. The regional index has risen 11 percent, heading toward a fourth-straight annual gain, which would be the longest streak since the index was created in 1988.
Track Record
Latin stocks sell for 12.7 times their earnings of the past year, versus 17.9 for stocks globally, based on MSCI indexes.
The region's markets stumbled to start this"
posted by eecalvin @ 4:16 AM
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