Equities: Watch Out Below!

Chile's all-share IGPA index has reached heady heights in recent weeks, but we are growing concerned that the market is starting to look overstretched and out of sync with the fundamentals. While a host of EM assets have notched up impressive gains of late, the fact that the Chilean bourse stands just 2.3% shy of its all-time high (set back in 2007) does not sit well with us given the vastly-changed macroeconomic landscape since then. Technically speaking, we believe that the IGPA's two-time failure to push above 15,400 is a pretty negative signal, although we would await a break of

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