Latin America: Truce or new era?

Cyclical and structural factors support investments in Latin American assets: 

Cyclical:

• Political pragmatism
• Distance from armed conflicts and geopolitical tensions
• Monetary discipline with an early start of interest rate cuts

Structural:

• Energy transition
• Stable democracy and institutionality
• Global fragmentation

•  Attractive valuations and favorable earnings momentum
  •    High fixed income yields with a limited level of risk

Risks include  global inflation and higher rates, deep global recession, geopolitics, elections, and idiosyncratic factors.