Equities: Mexico And Chile Favourites

It has been a volatile week for equity markets across the board, as global investor sentiment towards risky assets seesawed. In our view, such times of heightened uncertainty - on this occasion prompted by Standard & Poor's decision to cuts it outlook on US long-term debt - only increase the importance of selectivity in Emerging Markets. In Latin America, we continue to favour countries with strong macro fundamentals, market-friendly economic policies and stock indices with a solid technical picture.

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