Shifting Political Climate In South America

Readers of my blog know of my general interest in South America. In the past I have discussed how South America's political forces appear to be taking a turn toward the left.

In Street Insight (an expensive subscription site), Doug Kass (General Partner for Seabreeze Partners Short L.P.) wrote the following comments.

Our first and most consequential surprise was that the growing political instability in South America could have serious implications for the supply of a broad list of commodities, raising the spectre of cost push inflation.

Supportive of this concern were the results of the Presidential election in Chile over the weekend in which Michelle Bachelet of the Socialist Party claimed victory. A Bachelet win will bolster the shift to the left in Latin America, where socialist Evo Morales won the Bolivian election last month, and a Leftist also leads the polls in Mexico, Brazil, Uruguay and Argentina.

I think the change in political climate in South America warrants close attention.

For those serious about the markets, I encourage you to consider Street Insight.