Fund manager's comment/Michael Dow
Latin American equities have been one of the best-performing assets in US dollar terms so far this year. Mexico has been the best-performing market in the region and Brazil the worst ' a fact that has been mirrored in the performance of their respective currencies. Many Latin American countries are heavily indebted. When economic activity or government income drops for any reason, servicing this debt can become problematic. When such an event happens, it is even worse if your currency is pegged to the US dollar at a time when neighbouring countries have devalued theirs. Unfortunately...
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