Aberdeen Asset Management recently published a short factsheet about why investors should consider investing in Latin America stocks. For starters, many Latin American governments have succeeded in stabilizing and strengthening their financial and political systems. In fact, public debt as a percentage of GDP is much lower in Latin America than it is in developed countries like the USA, Japan and the Eurozone plus the region has repeatedly bucked the developed market trend for poor GDP growth:
… young and urbanized populations are increasing the region’s workforce and helping to drive domestic demand. Latin America remains one of the world’s principal suppliers of raw materials. Nevertheless, although exports remain an important source of revenue for the region, we believe an increasing focus on domestic consumption may provide a long-term boost for sustainable economic growth.
Aberdeen also believes:
In our view, the future looks bright for corporate Latin America too. We believe the region offers a large and expanding universe of high-quality companies. Many firms have reduced their debt levels, and profitability has improved. Moreover, management recognize the need to focus on shareholder value and to adopt “best practice” in order to ensure they are equipped to compete in the global investment arena… We are finding that the pool of quality businesses is growing year by year, with a steady flow of well-managed companies coming to the market.
To read the whole article, Why Latin American Equity?, go to the website of Aberdeen Asset Management. In addition, check out Latin American Stocks to Consider (Aberdeen) and Aberdeen LAQ Manager: Brazil “Looks to be Slipping Into a Recession” along with our Latin America Closed-End Funds list, our Latin America ADR lists and Latin America ETF lists.
- Latin American Stocks to Consider (Aberdeen)
- Aberdeen LAQ Manager: Brazil “Looks to be Slipping Into a Recession”
- Latin America: Where to Find Growth in 2019? (Pictet AM)
- Latin America’s Vicious Circle is a Warning to the West (The Economist)
- Key Themes for Latin America in 2023 (S&P Global)
- Latin America and the Coming Global Debt Crisis (Latin America Risk Report Substack)
- Inside Mexican Capital Markets with BBVA Bancomer’s Jaime Lazaro (Enterprising Investor)
- South American Economies Dive South as Growth Outlook Dims (Bloomberg)
- Investor Sentiment Survey: What Emerging Market Investors Think (Franklin Templeton)
- Panama to Shut Down First Quantum’s Giant Copper Mine (Mining.com)
- In Socialist Venezuela, Hungry Soldiers are Stealing Goats (CNBC)
- British Investment Managers Increase Their Emerging Market Bets (Reuters)
- Latin America is Poised for a Turnaround in 2018 (Miami Herald)
- Is There Progress Fighting Latin American Corruption? (Economist)
- Argentina: Where Growth & Stock Market Returns Diverge (Mobius Blog)