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You are here: Experts > People/Relationships > Retirement Planning > Mutual Funds > mutual fund
Expert: Warren Boroson
Date: 4/21/2008
Subject: mutual fund
Question
What's your opinion of T. Rowe Price Latin America? Is Latin America a still a good place to be?
Answer
Dear Steve:
I agree with Morningstar's assessment.
If you're planning to invest in Latin America, you had better be prepared for lots of volatility. And be armed with lots of patience.
M* recommends dollar-cost-averaging into such funds (investing gradually)--and having plenty of risk-tolerance. "The Latin American stock universe is dominated by a few dozen names, a handful of sectors, and the Mexico and Brazil exchange, and it doesn't include any developed markets."
My firm recommendation:
Buy T. Rowe Price Emerging Markets Fund instead.
Recently it had 22% in Latin America. Along with 12% in China, 10% in India 11% in South Korea. So it's risky as hell, but less risky than if it were exclusively in Latin America. And the folks at T. Rowe should know when you should or shouldn't buy Latin American stocks.
And it's a M* Analyst Pick.
Besides which, I own shares.
Good luck!
Warren
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