Downside Not Over Yet

Last Wednesday, we wrote that Latin assets could have further to fall, but that entry points would eventually present themselves. Three full trading days later, we remain of this view, and think there could be further downside ahead, particularly given the weakness in Asian markets this morning. Since last Tuesday, several Latin equity indices have fallen by around 10-11%, which qualifies as a correction, but may not represent the full extent of the rout. To put things into perspective, Latin America's major equity markets fell by an average of 24% in the May-June 2006 downturn (see chart comparing the present

To read the full article, please choose one of the following options: