 LATIN AMERICA
Still Struggling, But Still Growing
A slowdown in the U.S. spells trouble for Latin American companies, especially in Mexico, that export their goods north of the border. Telecom stocks, long a favorite of overseas investors, are going to feel the competitive crunch as European firms muscle in and the Brazilian government auctions off more wireless licenses. Lower oil prices are a worry for Mexico and Venezuela. Still, the region's economy will grow more than the U.S., if only because it's still recovering from the disasters of the late 1990s. And the weakness of Latin shares in 2000 means there are values to be found if you can stomach the risks that come with emerging markets.
Wal-Mart de Mexico
Benedict R.F. Thomas, a portfolio manager in Buenos Aires for T. Rowe Price, thinks Walmex, Mexico's largest retailer, can ride out a slowdown. The retail market in Mexico has been strong, and though it may slacken some in 2001, Walmex (which is partly owned by the U.S. Wal-Mart) has been gaining market share and still has room to improve its profits by making operations more efficient and cutting costs.
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The Year Ahead
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Viewpoint: Pass the Buck
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