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Current DateTime: 07:29:52 22 Nov 2009
LinksList Documentid: 30328029
How to Invest in Latin America: Strategist
Published: Tuesday, 9 Jun 2009 | 1:14 PM ET
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By: JeeYeon Park
CNBC News Associate

Vern Hayden, founder and president of Hayden Wealth Management, said investing in Latin America is like “playing with matchsticks” — but can be very rewarding. (See his recommendations, below.)

“You have to watch the political impact of any investment in Latin America,” Hayden told CNBC. There are "countries that are pro-capitalism and pro-US and the countries that are very socialistic."

However, he said, sticking with one country increases risk.

“You’ve got to watch it closely and pull out quick,” he said. “It’s better to invest through Latin America funds.”

Recommendations:

T. Rowe Price Latin America Fund [PRLAX  Loading...      ()   ] 

BlackRock Latin America Fund [MDLTX  Loading...      ()   ]

“I wouldn’t put more than 5 to 10 percent in any Latin America funds and I’d stay away from iShares like iShares Brazil [EWZ  Loading...      ()   ] because they’re passively managed — you don’t have an active manager who can be a good stock picker in the midst of a bunch of landmines in that area, so I’d be careful about that,” he said.

Disclosure:

No immediate information was available for Hayden or his firm.

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Bank of America [BAC  Loading...      ()   ]

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