I've got a very erudite West-Coast friend that I trade intellectual points-of-view with. We've both discussed the deteriorating situation state-side and have gone over options in both central America and South America. The real difference is that he's actually got the Passport stamps proving he's actually checked things out first hand. Like all decisions, there are upsides and downsides to SA & CA. But if things keep getting progressively worse, the downsides will be even smaller....South America is also looking more attractive by the day.
Back in May, Standard & Poor’s decision to bump Brazil’s credit rating to “BB+” put the country near the top of Christopher Hancock’s soon-to-be-bull-market list. Any country’s debt with a rating of “BBB-” (the next step up for Brazil) is considered “investment grade,” and according to Christopher, a flood of international investments nearly always ensues. “In a global economy,” writes Christopher, “sovereign credit ratings are crucial to informing investors around the world of a country's creditworthiness. They signal domestic and financial stability. Earning the investment-grade rating signals that a country is viewed nowhere near a default. Most institutional money will not even dip their toe in the water of a country that lacks an investment-grade rating. “That means one thing: The trillions of dollars in excess liquidity that hedge funds, private equity groups and sovereign-wealth funds are trying to invest effectively ignore some of the world's greatest assets for the simple fact that these assets rest in a country with a ‘subprime’ credit rating.” According to Mr. Hancock, Brazil is on track to get the big bump as early as 2008. If you’re in the right stock before Brazil is a BBB-, you could far outperform your U.S. investments.
Back in May, Standard & Poor’s decision to bump Brazil’s credit rating to “BB+” put the country near the top of Christopher Hancock’s soon-to-be-bull-market list. Any country’s debt with a rating of “BBB-” (the next step up for Brazil) is considered “investment grade,” and according to Christopher, a flood of international investments nearly always ensues. “In a global economy,” writes Christopher, “sovereign credit ratings are crucial to informing investors around the world of a country's creditworthiness. They signal domestic and financial stability. Earning the investment-grade rating signals that a country is viewed nowhere near a default. Most institutional money will not even dip their toe in the water of a country that lacks an investment-grade rating. “That means one thing: The trillions of dollars in excess liquidity that hedge funds, private equity groups and sovereign-wealth funds are trying to invest effectively ignore some of the world's greatest assets for the simple fact that these assets rest in a country with a ‘subprime’ credit rating.” According to Mr. Hancock, Brazil is on track to get the big bump as early as 2008. If you’re in the right stock before Brazil is a BBB-, you could far outperform your U.S. investments.
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