Latin American Stocks Hit by Emerging Market Turmoil

Despite the fall in prices, Morningstar analysts believe that LatAm stocks are not especially attractive relative to other emerging markets given the risk

Philip Straehl 26 October, 2018 | 7:12AM Gareth Lyons

Latin American Stocks

Emerging markets have had a rough 2018 and the pain has been disproportionately inflicted on Latin America, where political and economic cracks have emerged in countries like Venezuela.

While Morningstar analysts like emerging markets overall, Latin America falls short of a standalone opportunity. In short, LatAm prices aren't especially attractive relative to all emerging markets given the risk. While market declines have made valuations more attractive in Latin America, it doesn't offer a compelling risk/reward trade-off as a stand-alone investment, in our view.

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About Author

Philip Straehl  is Head of Capital Markets and Asset Allocation, North America, Morningstar Investment Management

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