Global portfolio managers rushed for cover during May and early June, tugging assets out of emerging markets, including Latin American currencies, stocks, and bonds.
As global equities plunged and expectations of higher interest rates in the industrialized world spread, a wave of risk aversion among major market players sparked a sharp tumble in most of the major Latin American currencies.
Right now, however, the consensus among economists is the recent pullback is a natural — and temporary — cooling down of an overheated market. Economic fundamentals, they say, point to more growth and more strength in some of the region’s key currencies. However, that doesn’t mean these markets are without risk.
Subscribe to:
Post Comments (Atom)
Post a Comment