After an unprecedented year, what one word best sums up the equity markets of Latin America?
“Busy,” according to Carlos Sequeira, head of research at BTG Pactual. While the region as a whole was largely impacted both socially and economically by Covid-19, each country from Brazil to Chile reacted very differently to the pandemic. This is in part due to global monetary policy, as well as each country’s individual government stimulus plans.
With just as varied economic recoveries — despite virus surges — throughout the region, there is cautious optimism across the investment chain in Latin America. But another looming election cycle means there is no downtime for the region’s sell side — or their clients.
The relative attractiveness of Latin America equities has been building since last year, according to Pedro Martins Jr., head of Latin American equity research at JPMorgan Chase & Co. “This constructive view for global equities is backed by a global synchronized expansion, monetary and fiscal policy support, and fading risks,” Martins said. “The tailwind boosted China equities first, then U.S. equities, and now we believe it is time for Europe and emerging markets to outperform — notably, LatAm.”
As Latin America’s markets are buoyed, investors are looking to two equity research firms for investment ideas, according to Institutional Investor’s 29th annual Latin America Research Team survey...