European Investors Tip LatAm Over Asia
As European sovereign risk ticks higher, the focus returns to opportunity in relatively stable markets like Latin America. Can it outperform other EM regions?
Europe entered the summer under a
fresh cloud of sovereign debt woes, leaving LatAm assuming the
unlikely role of safe haven. Many on the European buyside are
confident LatAm can outperform other EM regions over the next
Policy improvement, central bank
independence, transparency, tax reform, financial sector
strength, abundant energy supply and developed local markets
delight investors, bankers and analysts, although there is
still much work to be done on many fronts. Most importantly,
the region enjoys a strong financial system and almost none of
the debt burden problems plaguing the developed world. With
reforms and focused investment, Brazil in particular could
outperform large Asian nations.
"Latin America has an enormous opportunity, not just to
cower in the corner and think Oh yes, weve managed
this crisis really well, but to take real advantage,"
Jerome Booth, head of research at Ashmore, the UK-based EM
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