Equities: More Consolidation Than Capitulation

Despite our bearish bias towards Latin American equities, we are not yet ready to call the top in regional stock markets. The recent leg down prompted by the US Federal Reserve's decision to maintain the size of its balance sheet has been sharp, and in some cases short-term support levels have been taken out. But across the board most markets remain well supported, with insufficient evidence as yet that this is more than a correction in a medium-term uptrend.

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