In the last month, Latin American markets have come back from their drop in May. Exchange traded funds representing the region are the top performers over the last month. iShares MSCI Mexico (EWW) is up 17% for the month and iShares S&P 40 Latin America Index (ILF) is up 12%.
Top holdings in ILF are Mexican and Brazilian companies, such as Petrobras (PBR), an oil company, America Movil (AMX), telecommunications and Cemex (CX) a cement company. Materials companies make up a large component of the ETF as well and these mining businesses are reaping the rewards for gold, copper and aluminum demand.
Today the region is relatively stable and improving with economic development. Inflation is somewhat contained and currencies are stable.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.