Reuters – Latin American bond and equity markets offer investors strong potential for large returns despite the bloodbath on commodity and stock markets on Monday, a hedge fund firm told Reuters.
Hedge fund firm Emergent Asset Management and Argentina’s MBA Banco de Inversiones said on Monday they have launched a new hedge fund that will aim to exploit opportunities in the region once markets are calmer.
Latin American countries are rich in oil and precious and base metals, whose prices have recently jumped to record highs.
However, on Monday, panic-selling pushed crude oil prices down about 2 percent to around $70 a barrel and copper down to an intraday low of $7,700 after closing at $8,460 on Friday. Emerging market stocks and currencies were also marked down.
“The demand for commodities will continue to act as a strong economic driver in the Latin American region,” said Susan Payne, Emergent’s chief executive.
“Current account and fiscal surpluses, as well as flexible exchange rates, are also contributing to the region’s outperformance.”
