NEW YORK - Salomon Brothers Inc. changed its recommended country weights for Latin American equity portfolios.
Exposures to Chile, Argentina, Mexico and Peru were decreased, while exposures to Colombia, Venezuela and Brazil were boosted.
The changes were recommended in a new monthly Latin American strategic report written by John Mullin, the Latin American equity strategist at Salomon Brothers.
The report recommended a portfolio overweighted in the cyclical sectors in Mexico and Argentina, Brazil's state-owned industry sectors and equities in the Colombian and Venezuelan markets.
Conversely, the recommended portfolio underweights most sectors in the Peruvian market outside of mining because of the country's large deficit.
The report also recommended underweighting the Chilean banking sector, electric utilities and pulp and paper companies because of high valuation multiples.
