Economic Reforms in Latin America in the 80's

In the year leading to the early 90's, Latin America countries were frequently subjected to currency crises, banking failures, hyperinflation and many other monetary problem.

The problem has become some well known that even to this day, when economists tells about the different ways in which money can go bad by applying "macroeconomics populism" policy, the default currency referred in the statement is often talking about "peso"

But toward the late 80's, Latin America seems to have learnt the lesson.
With Chile leading the pack and implement economic reforms, State-owned companies were privatized, restriction on imports abolished and budget deficit trimmed.

Chile and the rest of the Latin America countries begain to enjoy attractive growth rate.

With such impressive growth, Latin America is once again attracting investors to the region.

At this point of time, with the in flux of foreign money and growth, the main priority of these countries is to control inflation rather than be concerned with the economic growth.

Economic Reforms Happening in Mexico

The stock market has rallied considerably since Mar 09.

However, do you have the proper foundation to invest in the market?

In this video, Suze Orman basically discuss the basic ingrident for successful investment, which is time.
And, while the stock market has rallied recently, the basic economics data is still showing that the economy is weak. Thus, to properly invest in the current market, you need to have the lay out a strong foundation and together with time on your side.

Watch the details in the video.

Jim Rogers had an interview in Singapore where he now reside.

In this interview, he discussed about the problem US and Europe is facing and why he thinks that Asia is the place to invest in the coming years.

He mentioned in a Bloomberg interview that "If you live in 1800, you need to be in UK, and if you live in 1900, you need to be in US, and in 2000, you need to be in Asia"

Watch the video and digest it fully.

In another upcoming video post of Jim Rogers had with Bloomberg, he will talks about the commodities market where he made his fortune and what he thinks about the commodities market in the future.

William O'Neil published the "How to Make Money in Stocks" in 1995 and has since gone through a few editions.

His method of stock investment is well documented in the book using a concise method which he named as CANSLIM method. 

The American Association of Individual Investor (AAII) keep tracks of a number of well know methodology including O'Neils CANSLIM method.

And O'Neil method stands at a portfolio return of 1489.6% since it AAII start tracking it from 1998.

That means if you invested strictly to O'Neil method tracked in AAII with $10,000 in 1998, your portfolio will worth $148,960 today. 

Read the details about William O'Neil CANSLIM method of screening for stocks and the stocks that passes the screening criteria.

I will present a series of article here in stages.

For now, the following graph is the illustration of the performance for the past 10 years. 

While the name being tagged to the financial crisis being 2008, it certainly did not end in 2008.
At this point of time in May 2009, the global economy is still experiencing a rather servere recession and it remains to be seen if a quick recovery is on the table or it will turn out to be another "Lost Decade" similar to what Japan has experienced in the 90's.

Below is a link to an animated illustration of how the current financial crisis developed.

This should give you a pretty good basic understanding of how we arrive at the current situation.

Click on this link to launch the "Credit Squeeze Explained" interactive presentation.

We are in the midst of one of the greatest financial crisis of the century.

However, should you stop investing in current time?
If you do, what should you be doing with your money then?
If not, then how should you be investing?

The approach as explained by Suze Orman in the following video is very similar to what Martin O'Neil described in his book How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition

However, there is a note of caution here that for Martin O'Neil mention that this method is specifically meant for Mutual Funds investing rather than for all stocks.

The reason he gave is that stock will go to zero if something goes wrong with the company, but mutual funds will never go to zero.