More Downside, But Bank Stocks Getting Cheaper

While we feel that the rally in EM assets that took hold late last week has further to run over the short term, with so much uncertainty at the global level we do not buy in to the view that Latin American equities have found a bottom. That said, if we had to turn bullish towards one market it would probably be Brazil, with the Bovespa benchmark equity index much cheaper on a trailing price-to-earnings basis than all other regional majors, despite what we still view as a relatively positive long-term investment

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