LATAM equity markets: A bubble atop a bubble?

High oil prices pushed Latin America’s equity markets to dangerous levels. In a new era where emotions about oil scarcity run high, Latin America is perceived as a big, endless supply of commodity wealth. But keep an eye on the volatility.

Today, global capital markets are a complex collection of bubbles. Many commodities are trading near all-time highs – a frothy peak springing directly from Asia’s voracious manufacturing appetite combined with limited global supply capacity. (After all, who wants a new lead-smelting plant or refinery opening up in their backyard?)

Yet few asset classes are perched so precariously high as those that are a bubble on top of a bubble – notably Latin American equity markets.

Almost all equity markets in Latin America are trading near historical highs.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access