As a Senior Managing Director and Chairman of a major risk mitigation company, Holder understands how vital integrity in business is to investors. However, before you take the plunge in investing, you need to know where the biggest opportunities will be in the New Year.
Latin America’s Trade Opportunities Pros and Cons
In an interview with Boyden in their Leadership Series, Holder addressed how Latin America is currently undergoing a unique event in the recent history of the region. Namely, the evolution of its markets is bifurcating into two separate directions, which experts are referring to as the Pacific Alliance and the Atlantic Alliance.
The Pacific Alliance is made up of countries that all face the Pacific Ocean, including Mexico, Costa Rica, Panama, Peru, Chile, and Columbia. These economies are currently stronger and more open, allowing for rapid development and freer inflow and outflow of capital. Since they are facing Asia, the world market’s new big player, they are trying to become more productive and competitive in the world economy themselves.
On the other hand, the Atlantic Alliance of companies is comprised of traditional powerhouse economies that are currently languishing. These include Brazil, Argentina, and Venezuela. These markets have become more protectionist, imposing capital restrictions and taking a different treatment with foreign investors than local investors. Brazil is a bit of an exception simply because of how big it is, but even here, the market is very lethargic and raising concerns as to its future.
Impending events such as upcoming presidential elections, the Olympic Games, and the World Cup may sway the future of these economies somewhat, but for the most part, Latin America is entering the international trade scene with two very different styles heading in two very different directions.
Frank Holder points out that investment and financial risks go hand in hand. However, in order to minimize your risks and maximize your profits, you should know where the dangers lie so you won’t fall into the inherent traps. Any investment comes with the systematic risks of a global economic crisis. There are non-systematic risks to look out for also, such as bad management or bankruptcy within the company. If you are aware of these risks you can plan your business strategies more carefully and make allowances for them before they happen, Frank Holder stresses.
Holder was the CEO of Holder International, which was acquired by FTI Consulting, a world premier advisory firm for global business, in 2007. He now serves as the Chairman of FTI’s Latin America region. For the past two decades, Frank Holder has directed security consulting assignments and corporate investigations in both Latin America and the United States.