Latin America comes to market

Worldwide forced deleveraging has quickly and chaotically brought down all equity markets, but the Latin America region appears to be shaping up under the pressure

The financial crisis has seriously undermined the 'decoupling' theory, which suggested that diversification in emerging markets would shelter investors from the worst of the storm in developed markets. So what has happened, and more importantly, does the investment case for Latin America still stack up? First of all, it is important to note the recent sell-off in Latin American equities is not due to any region-specific risks. Equity valuations never got to 'bubble' levels, companies so far have delivered on forecasts and to date Latin American economies continue to grow. However, the for...