Saturday, April 03, 2010
Dear Reader,
We're bullish on Brazil. The strength and size of Brazil's economy continues to impress us, and some of her largest companies are truly world-beating. Brazil's Petrobras was the second-most profitable corporation in the US and Latin America in 2009, posting net profits of 16.64 billion dollars. That placed it ahead of industry giants (and household names) such as Microsoft, Wal-Mart, and IBM. Only another oil company, Exxon Mobil, beat Petrobras. Moreover, Petrobras is the only non-US corporation listed in the top twenty. In the last 12 months, the company's market value gained 25%, boosted by the discovery of huge oil fields in Brazil.
Uruguay outperformed all other Latin American economies in 2009, growing by 2.9%. In a year when many economies worldwide posted negative growth, this was good news. Uruguay's becoming increasingly desirable as an investment location. It's safe, stable, peaceful, and cultured, with a European touch. The nice surprise is that despite all the benefits this country offers, property prices remain low. That's why Uruguay is one of Pathfinder's "hot" countries right now.
The worst Latin American economic performer in 2009 was Mexico. Growth shrank to - 6.5%, mainly caused by a fall in exports. However, projections for GDP growth this year are from 4% to 5%, according to the Mexican government, and some financial analysts, including Morgan Stanley.
The Mexican president also revealed last week that his government is investing a record 5% of the country's GDP in infrastructure. That's double what previous administrations spent, and good news for tourists and second-home owners. He made the announcement whilst unveiling plans for a new airport in the Riviera Maya. This new airport will bring 3 million visitors a year directly to one of Mexico's best beach areas. Of course, we've already figured out a way you can profit from this.
Giant stone spheres are attracting attention in Costa Rica from as far afield as the UK. A University of Kansas researcher, John Hoopes, is evaluating the spheres as a UNESCO World Heritage Site. Known locally as Las Bolas, some of the spheres date back to 600AD, and nobody is entirely sure what their purpose was. Several hundred exist, of varying sizes (the largest ones weigh over 16 tons), smooth-surfaced or with petroglyphs. Originally uncovered by United Fruit workers, some spheres suffered damage when workers dynamited them, thinking they contained treasure.
The spheres originated near the towns of Palmar Sur and Palmar Norte. We're watching this area closely, for other reasons. We're focusing on the planned international airport in Palmar Norte, and the recently unveiled upgraded coastal road, which will bring more tourists to this area. These tourists will explore the area's miles of sandy beach, the cute beach towns, and the pristine national parks. We think they'll like what they see, and want to grab a piece of this paradise for themselves...pushing property prices up. Now's the time to come visit, and see this place for yourself. Who knows, you might even catch a glimpse of those giant stone balls...
Margaret Summerfield
Posted Under:
costa rica, brazil, mexico, uruguay
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