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March 2015
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Invest in the Riskiest Economies of Latin America?

Invest in the Riskiest Economies of Latin America?
Analysis of the investment horizon of the riskiest economies in Latin
America according to David Osio, CEO of Davos Financial Group


For large and small investors, economies that offer alarming news about
their environment may also provide investment opportunities or
production sectors with particularly attractive returns.

For David Osio, CEO of Davos Financial Group, everything depends on the
measurement you want to take into consideration when evaluating a
country’s economy in order to invest.

Below is a brief analysis of the most notorious.


In a mixture of despair, skill and intelligence, negotiations were
initiated to restore relations between the Cuban government and the US.

“I think it will help both nations and their citizens. In the medium
term Cuba will be a place of great business opportunities, an island
with much appeal and little known, it will become one of the most
visited places in the world,” said Osio.

For investors it still remains at a high risk level, along with
countries like Haiti, so it is recommended to monitor it and be well
informed on the progress and opportunities of this opening, but
definitely wait.

The Caribbean

The Caribbean will be in very serious situations this year due to the
accentuated decrease in oil prices and macroeconomic complications of
key members – such as Venezuela – which will generate a situation of
vulnerability for Petrocaribe, one of the main energy suppliers and
sources of income for countries in this part of the region.

Central America

“This section of the continent offers several investment opportunities
that are worth exploring in depth. For example Panama, whose prospects
are positively influenced by the Canal expansion, scheduled for 2016;
Costa Rica, which has generated important local production; or tourist
developments in Nicaragua,” said Osio.


“In recent years, Colombia has grown enormously thanks to oil
exploration and exploitation. However, if the oil barrel is kept as low
or continues to decline, the Colombian economy will be affected,” said Osio.

“The internal situation marked by peace talks between the government and
the guerrillas, provides necessary political stability for investors.
Additionally, the economic situation in Venezuela gives Colombian
companies opportunities to export various products,” said Osio.


For Osio, Venezuela is experiencing a political and economic uncertainty
situation, exacerbated by the recent escalation of diplomatic friction
with the United States.

“The country exhibits an economy with serious abnormalities, such as 3
exchange rate systems that currently exist. This is accompanied by high
inflation and many allegations of corruption,” he said.

For Osio, the funding received by Venezuela is massive and poorly

“There is a lot of concentration on the maturity of short-term bonds,
and very little in the long-term. Additionally, there are obligations to
the Chinese Fund, which have become more difficult to meet due to
decreasing oil production,” explained the CEO of Davos Financial Group.

The reduced barrel production has been explained as a consequence of the
lack of investment to explore new wells, and for breach in agreements
with production partners as well as with the same PDVSA suppliers and

“In consequence, we find a country of high risk of a default on its debt
in the short term, but on the other hand, with unique opportunities in
the medium term if the country’s economic policy is radically changed,”
said Osio.

Among the measures to take into account are the exchange rate
unification, increase gas prices, application of AVT, and refinancing
with the Chinese government to obtain more cash flow, among others.

“However, despite what the country is experiencing, there is no richer
nation on the globe with more potential than Venezuela,” said Osio.

Davos Observer
Editorial Team/CMonasterio, 786-866-4393

Source: Invest in the Riskiest Economies of Latin America? – Yahoo
Finance –;_ylt=AwrBJSCc7gtVamsAANbQtDMD

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