How the shift in Latin American loyalties affects your portfolio

As expected, Hugo Chavez's party won full control of the Venezuelan legislature, clearing the way for him to get re-elected next year for a six year term.

What It Means:

Chavez's victory will strengthen his alliances with left leaning governments in Brazil and Argentina, two of Latin America's largest economies, and weaken the possibility of the U.S. achieving further trade agreements in South America.

Action Steps: 

Make sure your portfolio includes Brazilian, Chilean and other strong Latin American countries, both for growth and for dollar decline risk hedging.