Risk aversion is creeping back into Latin America

In 2008, investors in Latin America will need to balance the contradictions of the softening US economy and the strengthening commodities market

Latin American markets held up well in relative terms throughout the early stages of 2007's stock-market turmoil, but there was plenty of evidence of risk aversion creeping back into the market as the year drew to a close. Looking forward to 2008, investors will need to balance the apparently contradictory influences of a softening US economy and the ongoing strength of commodity prices. There seems little doubt that a deceleration in US economic momentum will lead to more modest global growth during 2008. This should provide ample opportunity to assess the extent to which the emerging ma...