Martin D. Weiss, Ph. D. Examines Resources and Riches in Latin America

Martin D. Weiss, Ph. D. examines the differences between Brazil's booming economic conditions and the U.S. declining economy. In this issue of Money and Markets, Dr. Weiss takes a closer look at the megatrends boosting the Latin American marketplace.

Jupiter, Fla., (PRWEB) January 16, 2008 -- Martin D. Weiss, Ph. D. examines the differences between Brazil's booming economic conditions and the U.S. declining economy. Dr. Weiss takes a closer look at the megatrends boosting the Latin American marketplace.

Back in the 1950s, the U.S. economy was the strongest in the world. Economies like Brazil's were precarious, their currencies on the verge of massive declines. Back then, the U.S. had a robust trade surplus, and virtually every country in the world craved its high-quality manufactured products. Brazil's products, by comparison, were often shoddy. And even America's oil and refining industries were the envy of the globe where as Brazil's was nonexistent. In those days, America's railroad, highway and riverine transportation networks were unsurpassed. Brazil, by contrast, had very little paved highways, no gas stations and few services.

All of that has not only changed, but it's actually in the process of reversing:

•    It's the U.S. economy that's now suffering. The housing bust is continuing to deepen and the credit crunch is continuing to spread. Consumer confidence is plunging, unemployment is surging and a recession is threatening to strike hard and fast.

•    It's the U.S. that has the largest trade deficit in the world. On Friday, January 11, the Commerce Department announced that November's deficit rose to the highest level in 14 months.

•    Mainly because America spent a record amount on imported oil. In contrast, Brazil now leads the world in developing and discovering new energy sources.

•    The U.S. dollar is now among the weakest in the world and Brazil's real is among the strongest.

•    America's domestic transportation network is in a state of chronic deterioration and disrepair.

In contrast, Brazil's economy is leaping forward.

Certainly, the United States is still far richer in almost all respects. But in terms of the direction of change, the contrast could not be greater. In early 2007, the skeptics said Brazil's economy would flop. Instead its growth doubled, exceeding even the rosiest of the government's own projections. Latin American stocks are enjoying their greatest boom in history and three megatrends are powering the boom:

1.    Population explosion: Within the next decade, Brazil and Mexico's combined population will exceed that of the United States. Already, with 180 billion people, Brazil is the fifth most populous country in the world.

And this shift is generating a whole new array of business opportunities. Whole new industries and profit-making opportunities are emerging to fill the needs of a new, more powerful middle class, driving demand for more consumer goods, more cars, and more roads.

2.    A new energy boom: About 300 miles off its southern coast, Brazil has made one of the largest oil discoveries of all time. Brazil's Petrobras is among the world's leaders in deep-sea oil exploration. And with it, Brazil is now on its way to becoming a major oil exporter.

More importantly, estimates of the find's size keep growing. Initially it was thought to be 5 to 8 billion barrels, and that was the largest find since a 12-billion barrel discovery in Kazakhstan seven years ago. But a Credit Suisse study released on January 3 estimates that the total potential find could be as much as 46.5 billion barrels.

Meanwhile, the country's first in line to supply ethanol to the U.S. to meet the requirements of new energy legislation recently approved by Congress. And Congress estimates that by 2022, 15 billion liters of ethanol will have to come from sources other than corn. Brazil is one of the few countries that can provide it.

3.    The boom in metals and materials: Growing global demand for metals has rekindled intense interest in South America's mineral wealth. The region holds some of the world's largest and most competitive deposits of alumina, bauxite, copper, iron ore, nickel and zinc.

"Overall, these megatrends explain why and how the stock markets of Brazil and other Latin American countries are following a new and impendent path," Dr. Weiss states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?Resources-and-Riches-in-Latin-America

About MARTIN D. WEISS & MONEY AND MARKETS     

Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc. and a leading advocate for investor safety, is a nationally recognized expert on domestic and international financial markets. With more than 35 years of experience, including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through his monthly Safe Money Report and daily Money and Markets.

Dr. Weiss' keen understanding of foreign markets and the global economy has earned him a reputation for thoughtful, in-depth analysis that investors can rely upon to make informed financial decisions. Regularly called upon by the media for his independent investing guidance, he has been featured in publications nationwide, including The Wall Street Journal, The New York Times, Chicago Tribune, Investor's Business Daily, and Forbes and has also appeared on CNN and CNBC.

Throughout his career, Dr. Weiss has been an advocate for consumers and investors in the insurance, banking and brokerage industries, dedicating his time and resources providing analysis and data for Congressional testimony, constructive proposals for reforms in the securities industry and legislation for full financial disclosure as well sound accounting and fiscal policy. In November 2004, he launched the Sound Dollar Committee, a nonprofit organization dedicated to building a network of investors seeking to protect the nation's future by demanding honesty in government accounting, a balanced budget and sound economic policy.

Dr. Weiss is author of The New York Times best-seller, The Ultimate Safe Money Guide, which gave baby boomers a road map to grow their wealth safely. It was listed on the New York Times Business, Wall Street Journal, and BusinessWeek best-seller lists, as well as the Barron's Roundup for 2002.

Dr. Weiss holds a bachelor's degree from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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