Following a year of consistent losses, investors are hopeful that the Latin American stock markets will make significant improvements this year. Peru, Brazil, Chile and many others in the region took significant hits last year, with some seeing their values drop as much as 23.6%. Despite the punishing environment of 2013, more and more investors are hopping on-board to lend their support to investment in Latin American stock markets in 2014.
A Cautious Mix of Hope and Realism
That shouldn’t be read to mean that investors should be overly liberal with their investments in the Latin American markets. As a whole, the region’s economic situation remains quite weak. However, peppered throughout the area are multiple bright spots that could help serious investors find profits. Panama, for example, remains a potentially lucrative investment, after the expansion of the Panama canal and a vibrant economy helped steer the nation to 10% growth in 2012 and another healthy year in 2013. Likewise, Brazil, with its cheap equities, is said to be a favorite among the investment community. Brazil, which took an especially large hit last year, is showing signs of picking up steam this year. Investors getting in now have a reasonable chance of buying high and selling low, when the time comes.
An Ongoing Trend of the Growth of Emerging Markets
Panama, Brazil, and other investment gold mines in Latin America point to an increasing trend of growing investment potential in many emerging markets. Just as Brazilian equities are too cheap not to be touched, markets in Turkey, India, Indonesia, and elsewhere are offering potential returns-on-investment that financial analysts agree are not to be ignored. In fact, earlier estimates showed that emerging market growth would outpace that of the United States and other highly developed nations through 2014. However, with the volatility of the markets, only time will prove or disprove that theory.
Are you shifting your 2014 investment strategies to include more risk in emerging markets, like Latin America? Sound off in the comments below.