Wednesday, May 21, 2008

Latin America in play....

Latin America took center stage today as a few of my trade ideas are starting to jell. Argentinan farmers announced today that they would suspend their strike to revive talks on export taxes. This is very good news as it have been certainly weighing on the minds of foreigners looking to invest in the fixed income markets. With the farmers on strike it was shutting down the Argentine economy and ramping up inflation. To Read more click HERE

In Brazil the central bank President Henrique Meirelles may raise the benchmark interest rate more than previously forecast as the outlook for inflation in Latin America's biggest economy worsens, Banco Itau Holding Financeira SA said. This coming from a story on BLOOMBERG This is something I have been looking for, for a while. Inflation is a global problem but it is effecting Latin America (and specifically Brazil) quite a bit. The Central Bank laid out a case for higher rates at the last meeting, and it looks like the pace will be stepped up and quite possible increase the final level of rates.

These markets remain pretty choppy and I think that you should be looking for "Base Hits" and not any "Home Runs".



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